- Telcel fined $94 million for exclusive SIM card deal with convenience chain Oxxo.
- America Movil and Femsa both reject regulator’s findings and plan to appeal.
What happened: Telcel fined over exclusive SIM card deal with Oxxo
Mexico’s telecom regulator, the Federal Telecommunications Institute (IFT), has fined Telcel, a subsidiary of America Movil, $94 million for entering an exclusive deal with Oxxo, a large convenience store chain, to sell its SIM cards. This fine was issued on June 17, 2025. The investigation into Telcel started in 2021 after a competitor raised concerns about the deal. The IFT claims that Telcel gave incentives to Oxxo and its parent company Femsa, which controls the chain, to sell only Telcel SIM cards and stop offering SIM cards from competitors. As a result, the regulator believes that this action harmed competition in the mobile market.
Along with Telcel, the IFT also fined Femsa and its subsidiary IMMEX. Femsa was fined $1 million for being involved in the exclusivity deal. Telcel, however, rejected the IFT’s findings, calling the investigation “biased” and saying it lacked sufficient evidence. America Movil, Telcel’s parent company, said it would challenge the fine in court. Femsa also disagreed with the decision, stating that the ruling does not reflect its business model, which it described as “broad, diverse, and open.” The companies made it clear that they would use legal channels to dispute the penalty.
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Why it’s important
The fine imposed on Telcel is one of the largest antitrust penalties in Mexico’s telecom sector. It reflects growing concern about anti-competitive behaviour in markets where dominant players, like Telcel, can easily influence retail channels. Telcel controls a large portion of the Mexican mobile market, making its partnerships with retail chains like Oxxo crucial for its business. The deal between Telcel and Oxxo may have given Telcel an unfair advantage by limiting consumers’ choice of mobile operators. This fine shows that regulators are paying close attention to such business practices and are ready to act when they believe competition is being restricted.
The case is also important because it highlights how retail partnerships and exclusive agreements can affect competition in emerging markets. As more telecom companies partner with large retail chains to increase their reach, these agreements could be scrutinised more closely. This ruling might lead to greater regulatory action in the future, especially in industries where large firms dominate. In this case, the fine also reflects the increasing importance of keeping markets open and ensuring that consumers have access to a range of choices.
