The Federal Telecommunications Institute (IFT), Mexico’s telecommunications regulator, has imposed fines totaling approximately $96 million USD on several companies for engaging in anticompetitive conduct in the distribution of SIM cards through convenience store chains.
Telcel Hit with Largest Sanction
Radiomóvil Dipsa, the operator of Telcel and a subsidiary of América Móvil, received the largest penalty: 1.7826 billion pesos (roughly $93.8 million USD). The IFT concluded that Telcel engaged in relative monopolistic practices on a national scale by influencing how SIM cards were sold through dominant convenience store chains—including Oxxo, 7-Eleven, Extra, and Circle K—which jointly controlled 93% of the relevant retail channel in 2023.
Telcel has strongly contested the ruling, calling the fine “disproportionate and biased,” and claims it represents 3.03% of the company’s Q1 2025 revenue. In a public statement, Telcel rejected the accusation of anticompetitive conduct, criticizing the IFT’s investigation as “based on claims from a competitor” and “lacking in objectivity and evidence.” The company has pledged to exhaust all legal avenues to overturn the decision.
Oxxo and IMMEX Also Penalized
The IFT also sanctioned two of Telcel’s retail partners. Oxxo and Impulsora de Mercados de México (IMMEX) were each fined 19.5 million pesos (about $1 million USD) for their role in the alleged conduct. This brings the total fine for all parties involved to 1.8216 billion pesos, or approximately $95.8 million USD.
Investigation Origin and Broader Scope
The investigation began in August 2021 and was publicly disclosed in December 2021, following a formal complaint—reportedly by Telcel’s rival, AT&T Mexico. The IFT clarified that the probe focused on the entire national market and was not initially targeted at any specific company.
According to the IFT, the case involved possible violations of Articles 54 and 56, Section I of Mexico’s Federal Economic Competition Law, particularly concerning exclusive dealing arrangements and market foreclosure tactics in the sale and distribution of SIM cards.
The retail channel under scrutiny includes not only convenience stores but also major self-service and department store chains such as Walmart, Soriana, Suburbia, Liverpool, and Coppel. This suggests that further enforcement actions may be forthcoming.
Prior Sanctions and Pending Legal Reform
This is not Telcel’s first sanction. In September 2024, the IFT fined the company 90.66 million pesos for offering incentives to distributors in Colima, Jalisco, and Michoacán to stop selling competitors’ SIM cards and instead promote only Telcel’s products.
The present fine could still be overturned through Mexico’s judicial system, including commercial courts, telecom-specialized appellate courts, and potentially the Supreme Court of Justice.
This ruling also comes at a time of regulatory transition. The IFT is expected to be dissolved within the next five weeks and replaced by a new federal body, the Agency for Digital Transformation and Telecommunications (ATDT), as part of pending legislative reforms. The future of competition enforcement in the telecom sector under this new agency remains uncertain.
