Mexico. The Plenary of the Federal Institute of Telecommunications, IFT, sanctioned América Móvil and Telcel for entering into exclusivity agreements with Blue Label México, S.A.P.I. de C.V. (BLM), which prevented it from marketing or providing airtime for Telcel's competitors in the mobile phone service.
This conduct, which occurred between March 31, 2012 and August 12, 2014, constitutes a relative monopolistic practice provided for in Article 10, section VIII, of the Federal Law on Economic Competition (LFCE) in force in 2012.
In this sense, the IFT Plenary determined that the conduct of América Móvil and Telcel was intended to unduly displace other agents of the relevant market and substantially prevent access to other agents to related markets.
Taking into consideration the provisions of articles 35 and 36 of the LFCE 2012, the Plenary determined to impose on América Móvil and Telcel a sanction equivalent to ninety-six million eight hundred and twenty-five thousand eight hundred and thirty-one point fifty-one pesos ($96,825,831.51 MXN).
The investigation into this case began on October 15, 2014, after the Institute received a complaint against Telcel and others for alleged relative monopolistic practices, and concluded on May 30, 2017. Subsequently, on August 30, 2017, the IFT Investigating Authority issued the Office of Probable Responsibility (OPR) in which it accused América Móvil and Telcel of the conduct consisting of entering into an exclusivity agreement with incentives to BLM, which was followed by a procedure in the form of a trial in which the defendants exercised their right to a hearing and presented statements and evidence.
Once the procedure was released and the file integrated, on February 21, 2018, the matter was turned over to Commissioner Adolfo Cuevas Teja who, in his capacity as Commissioner Rapporteur, based on Article 33, section VI, of the LFCE 2012, was in charge of presenting the Draft Resolution to a vote of his peers and of integrating the final Resolution.
With this resolution, the Institute complies with the provisions of the Constitution and the Federal Law on Economic Competition, promoting, protecting and guaranteeing free competition and economic competition in the telecommunications and broadcasting sectors.
