Telmex faces consumer watchdog lawsuit over illegal charges

Telmex, America Movil's (NYSE: AMX) Mexico-based wireline telco subsidiary, is facing a lawsuit from Profeco, Mexico's consumer protection agency, over claims that the country's dominant telco made illegal charges.

Rafael Ochoa, a legal expert at the federal prosecutor's office for Profeco, said in Reuters report that Telmex had made unwarranted charges for a privacy service and Profeco had filed the suit with a federal civil court in Mexico City.

At issue is a MXN 10.40 (USD 0.84) a month charge the telco made on users for a data protection service.

Ochoa told Reuters that they don't know how many customers can be added as plaintiffs on the suit and how much Telmex is obligated to pay.

"There's still not a precise estimate," Ochoa said, adding that a judge will rule on the case in about six months.

This is not the only time Telmex has come under regulatory fire.

Cofeco, Mexico's competition agency, said it would fine Telmex $52 million for what it said was "monopolistic practices."

Mexico's telecom market is in the midst of a major change. Last month, the Mexican government began drafting legislation that would allow companies outside of the Latin America country to acquire controlling stakes in Mexican telecom firms.

For more:
- Reuters has this article

Related articles:
Mexico may lift foreign ownership cap on telcos
America Movil Q4 revenues down 1% amidst 1.4 million gain in broadband RGUs
Telmex fined $51.6 million for anticompetitive practices
Transtelco wraps its Mexico City metro fiber buildout
America Movil takes over Latin American TV market lead from DirecTV

Suggested Articles

Windstream Enterprise announced Tuesday that it has integrated office communications platform Slack into its unified communications portfolio.

In order to boost efficiency and reduce operational costs, CenturyLink has launched a cloud-based managed emergency call handling service.

In order to better compete against telcos' managed SD-WAN services, Cato Networks took the wraps off of its Hands-Free Management offering.