Mexican court dismisses IFT’s decision on Televisa’s dominance

According to Reuters, a Mexican court has dismissed the Federal Telecommunications Institute’s decision that declared Grupo Televisa did not have substantial power in pay TV market, two people with knowledge of the matter said on Thursday, last week.

This means the telecoms regulator (IFT in Spanish) must make its decision again, said the two people, who declined to be named. Reuters reported that the ruling was challenged by Totalplay, which is part of Grupo Salinas.

In turn, sources from Mexican regulator told El Universal newspaper that the only authority with powers to declare whether or not Televisa has substantial power in pay TV market is the IFT, and said that they were not notified of the issue.

Likewise, Televisa said that it has not been notified about the resolution, so it does not know the content of the document and cannot declare about it.

In 2015 IFT said Televisa did not have market power in Pay TV, which means that the company does not have a special regulation. The regulator justified its decision at the time by saying competitors such as Dish, Megacable and Axtel were adding subscribers and taking market share from Televisa. Currently, Televisa accounts for about 60% of the Pay TV market in terms of subscribers.