Global Competition Review - America Movil to slim down in anticipation of law changes

Global Competition Review - America Movil to slim down in anticipation of law changes

July, 2014

America Movil to slim down in anticipation of law changes. America Movil to slim down in anticipation of law changes.

Mexico’s telecoms industry is braced for a significant change after America Movil decided this week to break up its phone business in Mexico rather than face potentially crippling divestitures under new competition rules. Fernando Carreño, of Von Wobeser y Sierra in Mexico City, says the decision to break up America Movil is understandable, if not expected. "The IFT now has such important powers to appoint 'prevailing economic agents' and this has a great impact on the development and management of the activities of these companies," Carreño says. Mexico’s telecoms industry is braced for a significant change after America Movil decided this week to break up its phone business in Mexico rather than face potentially crippling divestitures under new competition rules. Fernando Carreño, of Von Wobeser y Sierra in Mexico City, says the decision to break up America Movil is understandable, if not expected. "The IFT now has such important powers to appoint 'prevailing economic agents' and this has a great impact on the development and management of the activities of these companies," Carreño says.

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