Mexico City, April 28th, 2023.
The Federal Telecommunications Institute ("IFT" for its acronym in Spanish) announced on April 27, 2023, that following a complaint, it has opened an investigation under file number AI/DE-004-2022, for the possible execution of abuse of dominance conducts in the market for mobile operating system application stores, and related markets, as well as the distribution of audiovisual content through Internet platforms at a national level. Among the investigated conducts are tying's, price discrimination exclusivity contracts, increase in rivals', and demand reductions.
In other cases, the IFT has explained that, through app stores, users can download applications to their cell phones, which allows them to use their features, make use of mobile telecommunications services, and access various services and content available on the internet, from their devices. In the past the IFT has considered that audiovisual content through internet platforms can include video, videoconferencing, on-demand content, messaging services and social network communication.
The IFT may require economic agents in the relevant market to provide documents or information or conduct on-site inspections. In such cases, the Federal Economic Competition Law ("FECL") may compel such economic agents to cooperate with the IFT and provide it with the requested information.
On the other hand, the announcement of the investigation aims to provide any interested economic agents with the opportunity of cooperating and providing any information it deems appropriate with relation to the investigated conduct or circumstances which may be contrary to the FECL. Therefore, any person or company involved in the relevant market that considers that it may have been affected will have the opportunity to contribute to the IFT's investigation.
It is worth mentioning that this investigation is independent from previous investigations made public the Federal Economic Competition Commission (the other competition authority in Mexico) as well as former investigation by the IFT in a similar market.
The Competition and Antitrust Practice of the firm will be pleased to provide any information regarding the content of this document.