News Update

Telefonica questions Cofeco’s lack of action

02 March 10

Spanish telecom giant Telefonica lodged a formal complaint with Mexican antitrust body Comision Federal de Competencia (Cofeco), criticizing the watchdog for discontinuing an investigation into potential anti-competitive practices by fixed line incumbent Telefonos de Mexico, BNamericas reports.

Telefonica prompted a two-year investigation by Cofeco after alleging that Telmex’s bundling strategy was hindering competition. However, in August 2009 the regulator announced the findings of its probe, stating that there was insufficient evidence of any wrongdoing by Telmex, and it closed the case.

In a new complaint raised to Cofeco, Telefonica has objected to Telmex’s decision not to pass on to the consumer a new 3 percent telecoms tax introduced earlier this year as long the customer is signed up to one or more of the incumbent’s high speed internet services.