IFT plenary sanctions Telcel for committing a relative monopolistic practice

This is an automated translation of the original release published in Spanish.

By IFT

The Plenary Session of the Federal Telecommunications Institute (IFT), in its XXII Ordinary Session, resolved to sanction Radiomóvil Dipsa, S.A. de C.V. (Telcel) for having engaged in a relative monopolistic practice provided for in articles 54 and 56, section VIII, of the Federal Economic Competition Law.

The alleged conduct consisted of granting discounts, incentives or benefits to an indirect distribution channel with the requirement of not marketing the package of cellular equipment with SIM cards and balance recharges of economic agents competing with Telcel, in the states of Michoacán, Colima and Jalisco.

This conduct affected consumers by restricting their options for purchasing mobile terminal equipment and SIM card packages, as well as for recharging, from providers other than Telcel in that distribution channel, so the IFT Plenary determined to apply a fine of $90,659,701.72 (ninety million six hundred fifty-nine thousand seven hundred and one pesos 72/100 m.n.) and ordered the suppression and correction of the practice.

The sanction imposed derives from an investigation initiated by the Institute's Investigative Authority in January 2021, which led to the issuance of a Probable Responsibility Opinion by the same authority in November 2023. With said opinion, Telcel was summoned to the procedure followed in the form of a trial, in which it was able to fully exercise its right to a hearing and opportunity for defense.

This resolution is based on the economic competition authority powers of the IFT and is one more example of the importance of having the power to sanction practices contrary to the process of economic competition and free competition, with the aim of ensuring that Mexicans have more and better telecommunications and broadcasting services, of higher quality and at lower prices.