La Jornada (Mexico City)
Carlos Slim’s Company Contests $138.5 Million Fine by Ecuador
February 10, 2014, 9:56 pm
By Miriam Posada
Conecel, a subsidiary of América Móvil, contested a fine of $138 million imposed by Ecuador’s Superintendency for Control of Market Power on the grounds that Carlos Slim’s company exercised “abuse of market power” in 2012. Conecel announced that in its defense it would exercise the remedies the law provides.
In a press release, Conecel stated that the fine is unjustified and results from “a complaint by the state operator CNT (Corporación Nacional de Telecomunicaciones) in regard to five properties (from among the thousands Conecel leases) which CNT claims it was unable to expand its network into. In the same area as these five properties, other equally suitable options and properties exist where the required infrastructure could be installed. Therefore, there has been no barrier to entry or restriction on competition for any operator.”
The company, which operates in Ecuador as an affiliate of Claro, said “the disproportionate magnitude of the fine violates the constitutional principle of proportionality and affects the legal security on which investment processes are based.”
“Conecel will exercise the remedies the law provides in order to achieve a resolution in accordance with the law that ensures due process within a framework of legal security.”