Mexico. Resolving a process that came from the defunct Federal Competition Commission on the possible conduct prohibited by the Federal Law of Economic Competition (LFCE) in the markets for the provision of restricted television and audio service, the Federal Institute of Telecommunications, IFT, sanctioned Telmex and Dish.
The investigation resulted from the accumulation of three complaints filed against Telmex, Dish Mexico and companies belonging to their respective economic groups for the probable performance of various acts that could be in violation of the LFCE.
After evaluating the evidence and statements of the parties to the proceedings, on January 7, 2015, the IFT Plenary resolved that:
Telmex, through its subsidiary Teninver, acquired control in the company Dish Mexico, through various contracts, which constitute a concentration in terms of the LFCE.
For the amount of these acts, the concentration was subject to the obligation to be notified before its completion. The parties failed to comply with this legal obligation, for which they were sanctioned in the terms established by the LFCE.
Cofresa, a company that belongs to the same economic interest group of Dish Mexico, was declared responsible for having falsely declared to the authority during this procedure.
Based on this and based on Article 35, section VII, of the LFCE, the IFT Plenary decided to impose the following fines:
1) A Teléfonos de México, S.A.B. de C.V. a fine in the amount of $10,518,000.00 (ten million five hundred and eighteen thousand pesos 00/100 M.N.).
2) To Teninver, S.A. de C.V. a fine in the amount of $3,895,600.00 (three million eight hundred and ninety-five thousand six hundred pesos 00/100 M.N).
3) To Comercializadora de Frecuencias Satelitales, S. de R.L. de C.V. a fine in the amount of $3'098,249.30 (three million ninety-eight thousand two hundred and forty-nine pesos 30/100 M.N).
4) A Corporativo Mexicano de Frecuencias Dish, S.A. de C.V. an amount of $8'553,789.20 (eight million five hundred and fifty-three thousand seven hundred and eighty-nine pesos 20/100 M.N).
5) To Dish México Holdings, S. de R.L de C.V. a fine in the amount of $10,518,000.00 (ten million five hundred and eighteen thousand pesos 00/100 M.N.).
6) To Dish México, S. de R.L. de C.V. a fine in the amount of $10,518,000.00 (ten million five hundred and eighteen thousand pesos 00/100 M.N.).
7) A Grupo Frecuencia Modulada Televisión, S.A. de C.V. a fine in the amount of $10,518,000.00 (ten million five hundred and eighteen thousand pesos 00/100 M.N.)
8) To Echostar Mexico Holdings Corporation a fine in the amount of $10,518,000.00 (ten million five hundred and eighteen thousand pesos 00/100 M.N.).
The sanction was not imposed as a result of a practice harmful to the market, but for the breach of the obligation to notify a concentration, which obstructed the possibility for the authority to exercise its preventive powers that both the Constitution and the LFCE grant to the IFT in matters of economic competition.
