America Movil subject to antitrust measures for one-year compliance period regardless of asset sale plans
America Movil’s plans to sell assets to reduce its market share to below 50% will not result in terminating antitrust measures imposed on the company until the expiration of a year-long compliance period, according to a Spanish-language report in El Universal.
The report cited Maria Elena Estavillo, a commissioner with Mexico’s telecommunications regulator (Ifetel), who noted applicable law requires America Movil to comply with the antitrust measures for one year following a period of up to 120 days provided for Ifetel to evaluate and rule on the asset sale proposal. Ifetel’s analysis of the proposal will focus on both market share reduction and fomenting market competition.
America Movil controlling shareholder Carlos Slim was cited last week in a press report as suggesting the asset sale could be completed in six months. America Movil announced the sale plans on 8 July as an effort to remedy Ifetel’s March determination of the company as economically preponderant in Mexico’s telecommunications sector, based on the company’s market share in excess of 50%. Ifetel’s preponderance ruling imposed antitrust measures forcing the company to share infrastructure with third parties and accept price controls and bans on exclusive media rights to events such as soccer games, as reported.
The asset sale has prompted expressions of interest from Mexico-based peers Axtel and Alestra, press reports of negotiations with AT&T and speculation regarding a variety of additional potential suitors including large European and Chinese telecommunications companies.
Source El Universal