Mexico City, April 28, 2023.
On April 27, 2023, the Federal Telecommunications Institute ("IFT") published the notice of initiation of the investigation by complaint, filed under file number AI/DE-004-2022, for the possible commission of relative monopolistic practices in the market for mobile operating system application stores and related markets, as well as the distribution of audiovisual content through Internet platforms nationwide. Among the conducts investigated are sales tied to exclusivity contracts, price discrimination, increased costs for rivals and reduction of demand.
The IFT has explained in another case that, through application stores, users can download applications to their cell phones, allowing 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 may include video, videoconferencing, on-demand content, messaging services and social network communication.
In this investigation, the IFT may request written information, conduct verification visits, as well as summon economic agents that participate or have a relationship with such market to testify. According to the Ley Federal de Competencia Económica ("LFCE"), there is an obligation for the economic agents that are requested and visited to cooperate and submit the requested information to the IFT.
The purpose of the publication of such investigation is to provide any economic agent with an interest in the investigation with the opportunity to cooperate and state what it deems appropriate in relation to the investigated conducts or circumstances that may be contrary to the LFCE. Therefore, any person or company that considers that it has an impact on the market under investigation will have the opportunity to express it before the IFT.
This investigation is independent of the investigation announced by the Comisión Federal de Competencia Económica (Mexico's other competition authority) as well as the investigation previously announced by the IFT in a similar market.
The lawyers of the Antitrust area of the Firm are at your disposal to answer any questions regarding the content of this document.