24 July 2025

Mexico’s telecommunications regulator, the Instituto Federal de Telecomunicaciones (IFT), has imposed a hefty MXN1.78 billion fine on Telcel, a subsidiary of América Móvil, following a thorough investigation into alleged monopolistic conduct.

The regulator’s action stems from claims that Telcel engaged in exclusivity arrangements with Oxxo, the largest convenience store chain in Latin America, to restrict competition in the mobile market.
The IFT explained that Telcel allegedly granted incentives to Oxxo and Impulsora de Mercados de México (IMMEX), a food and beverage services company, under the condition that they would not sell SIM cards from rival providers. This practice, the regulator argued, aimed to limit consumer choice and maintain Telcel’s dominant position in the telecommunications sector.

Oxxo, which operates nearly 22,000 stores in Mexico and has expanded into Brazil, Colombia, Chile, Peru, as well as growing markets in Canada and the United States, is a significant player in the retail landscape. América Móvil, a major telecom operator with a broad presence across Latin America, denied the regulator’s allegations and announced plans to challenge both the investigation and the fine.

The investigation by the IFT was initiated in 2021 following a complaint from a competitor who accused Telcel of engaging in monopolistic practices. Alongside the fine imposed on Telcel, the regulator also sanctioned Oxxo and IMMEX with penalties totalling MXN19.5 million. Both subsidiaries are linked to Femsa, a multinational corporation involved in beverage and retail sectors.