Antitrust in the International Telecommunications Sector: The United States Challenges Mexico’s Telmex Monopoly
Posted: 8 Apr 2011
Date Written: 2002
Mexico’s telecommunications sector mirrors other industries in Mexico that have long been subject monopolistic business practices. Telmex, Mexico’s telecommunications monopoly benefited heavily from political corruption and back-room alliances during the rapid growth of the telecom sector in the 1990s. The Mexican government effectively hindered foreign competition from challenging Telmex’s control of incoming and outgoing communications apparatus and transmission lines, which prompted the United States Trade Representative to file a formal complaint before World Trade Organization to force Mexico to open its telecommunications markets to foreign investment and foreign competition. This article examines the United States dispute against Telmex and the international trade agreements that govern the business relationships between multinational corporations, the state, and consumers.
Keywords: Mexico, telecommunications, monopoly, Telmex, World Trade Organization, United States Trade Representative, foreign investment, foreign competition, multinational corporations
JEL Classification: F23, K21, K30, K33
Suggested Citation: Suggested Citation