Dish fined $43 million peso for market concentration

Failing to comply with certain regulations has resulted in Dish Mexico being fined $43 million peso by the Federal Telecommunications Institute (IFETEL).

An investigation by IFETEL resulted in the discovery of market saturation by the company.

The Federal Telecommunications Institute fined Dish $43 million and TelMex $14.4 million peso for failing to report to authorities a number of contracts, which according to IFETEL, constitutes a market concentration.

It was determined that Dish Mexico did not produce all of the documentation relating to the commercial alliance they hold with TelMex.

The fine was imposed even though IFETEL determined the market concentration did not cause harm, however, they are still analyzing more than 200,000 folios. Carlos Slim, owner of TelMex, feels that since there is no harm to the market, the penalty is unjustified.

“Telmex has never participated in the operation, management or conduct of Dish, so the conclusion they’ve reached is surprising,” the company said in a statement.

President of IFETEL, Gabriel Contreras, said he could not discuss the matter at hand while not properly notifying everyone involved in the case, which is expected in the coming days.

The investigation began in 2008, when companies Televisa and TV Azteca reported an alleged partnership between Dish and Telmex, in which the latter would be in a position to purchase the satellite TV operator once authorized modifications were made.

In a statement, America Movil and Telmex responded that “they do not share the conclusions and the resolution issued by the IFETEL and will enforce all legal means available against it.”

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