Latin American telecoms giant America Movil is to contest a US$1 billion fine imposed on its market-leading Mexican arm for “monopolistic practices.” According to a Financial Times report, the fine is the largest ever handed-out by Mexico’s Federal Competition Commission (CFC). It follows a four-year investigation into Telcel, America Movil’s Mexican unit that controls around 70 percent of the country’s mobile market. In a statement to the Mexican Stock Exchange (BMV), America Movil – which is owned by Carlos Slim (pictured), the world’s richest man – said it would contest the fine, noting it was “analysing the reach, basis and motivation of said resolution with the aim of using each and every one of the defence measures at its disposal.” An executive told the Financial Times over the weekend: “Neither the alleged practices nor the size of the fine have any legal or economic ground. We will take [CFC’s] ruling to an independent court for judicial review and revert it.”

Mexican regulators have long been worried that Telcel’s dominance in the mobile market has meant higher prices for consumers. “It finally looks as if we are beginning to match international practices,” said Ernesto Piedras of the Competitive Intelligence Unit in Mexico City. “It’s a step in the right direction.” According to local media, America Movil has 30 working days to make an appeal to the antitrust body over the fine.