Mexican court to study America Movil injunction against regulator

Reuters News
Posted: Apr 21, 2014 8:09 PM

MEXICO CITY (Reuters) - A Mexican court said on Monday it would begin analyzing a request from telecommunications giant America Movil for an injunction against a regulatory ruling that declared it dominant.

Controlled by tycoon Carlos Slim, America Movil has about 80 percent of Mexico's fixed-line business and some 70 percent of the mobile sector. It was ruled dominant earlier this year by new regulator the Federal Telecommunications Institute (IFT).

That ruling allowed the IFT to impose a series of tougher regulations against Slim's flagship company.

The court, which specializes in competition and telecoms cases, said it had admitted the injunction against the IFT.

The Federal Judicial Council, the Mexican judiciary's administrative arm, said a constitutional hearing will now take place on May 13 to hear both sides of the argument.

Mexican companies like America Movil have used injunctions to block regulator decrees for years, but a constitutional reform passed last year means that injunctions can no longer be used to suspend regulatory actions while an appeal is processed.

The court dismissed America Movil's request for an injunction against the reform itself.

(Reporting by Christine Murray, Tomas Sarmiento and Anahi Rama; Editing by Cynthia Osterman)