Injunction request by AM to be heard by Federal Judicial Council

22 Apr 2014

A Mexican court has said it will examine an injunction request from Mexico-based telecoms giant Movil (AM) against recent rulings regarding the dominance of the company’s local fixed and mobile units – Telmex and Telcel. With both aforementioned companies having been declared as dominant in their respective sectors in March 2014 by the Instituto Federal de Telecomunicaciones (Ifetel), Bloomberg reports that a court specialising in competition and telecoms cases has admitted an injunction request against the regulator. As such, the Federal Judicial Council, the Mexican judiciary’s administrative arm, will now conduct a constitutional hearing on 13 May to hear arguments from both sides with regard to the matter.

While Mexican companies had long used injunctions to block regulator decrees, constitutional reforms passed last year mean that injunctions can no longer be used to suspend regulatory actions while an appeal is processed. As such, a request from AM for an injunction against the reform itself has been dismissed by the court.

Meanwhile, Telefonica, which controls the country’s second-largest cello by subscribers, Movistar Mexico, has said that AM is already failing to adhere to regulations linked to its unit’s dominant status. To that end, it has claimed that AM was failing to share its network, provide information about its infrastructure or give unblocked mobile phones to customers.