Carlos Slim's business faced penalties due to allegations of anti-competitive conduct and monopolistic behavior
In a significant move, the Federal Telecommunications Institute (IFT) has fined Carlos Slim's telephone company, Telcel, 1.783 billion pesos for alleged monopolistic practices. The fine is believed to be the result of an investigation initiated in 2021 for practices related to the distribution and sale of SIM cards in various convenience stores.
Telcel, which is part of América Móvil, continues to hold a dominant position in the Mexican mobile market, controlling around 64% market share as of 2025. This dominance results in significant advantages in SIM card distribution and market influence, contributing to substantial competitive challenges for rivals such as AT&T, which holds about 18% of the market.
Despite regulatory reforms in Mexico aimed at reducing monopolistic practices and opening the telecom market, Telcel’s dominance persists, strongly limiting competitors’ ability to expand effectively. For example, AT&T, after more than a decade of efforts and an investment of roughly $10 billion in Mexico, has struggled to increase its market share or challenge Telcel’s control. This struggle has led AT&T to explore selling its Mexican mobile unit for over $2 billion, signaling ongoing difficulties competing against Slim's company in SIM card distribution, network reach, and subscriber acquisition.
The institute's resolution indicates that the granting of incentives and benefits to Oxxo and IMMEX was one of the reasons for the fine. An indirect distribution channel was also a reason for the fine, conditional on not selling SIM cards of economic agents that would affect Telcel nationwide.
The article can be shared on various social media platforms and saved for later reading. It was published by The Mexico City Post and can be printed for convenience. The fine serves as a reminder of the ongoing need for competition and fair practices in the Mexican telecom market.
The fine imposed on Telcel, amounting to 1.783 billion pesos, signifies a response from the Federal Telecommunications Institute (IFT) towards alleged monopolistic practices in the telecommunication industry. The penalty stems from the company's involvement in distribution and sale practices of SIM cards, involving convenience stores like Oxxo and IMMEX, and its utilization of an indirect distribution channel, impacting the competition in the finance sector and broader business landscape.
