América Móvil agreed to pay the fine connected with stock purchases of Puerto Rico Telephone by CEO Carlos Slim and family
Mexico-based telecom giant América Móvil agreed to pay a $1.1 million fine to resolve an investigation by the Federal Communications Commission into violations of foreign ownership rules tied to the carrier’s stake in Puerto Rico Telephone.
The FCC Enforcement Bureau said its investigation found that América Móvil owner Carlos Slim and his family made stock purchases that “repeatedly exceeded the foreign ownership levels approved by the commission,” resulting in the largest fine for violating such rules. The FCC noted three violations over a five-year period, with the most recent cited in June 24, when the Slim family increased its ownership of América Móvil through the purchase of stock from AT&T International. That deal, in turn, increased its ownership of Puerto Rico Telephone “beyond the voting and equity interests then approved by the agency’s International Bureau in accordance with the FCC’s foreign ownership rules and policies.”
“Foreign companies doing business in the United States and its territories must follow all federal rules, including those governing their ownership of American companies,” explained FCC Enforcement Bureau Chief Travis LeBlanc. “The FCC ensures that foreign ownership in American telecommunications carriers is in the public interest, considering issues related to competition, national security, law enforcement, foreign policy and trade policy.”
The settlement also includes América Móvil and Puerto Rico Telephone agreeing to adopt compliance plans preventing future ownership violations, entailing monitoring of compliance, designating compliance officers and reporting regularly on compliance.
Outside of Puerto Rico Telephone, América Móvil controls domestic prepaid provider TracFone Wireless, which offers various services through big-box retailers running across a number of cellular networks. TracFone last year was slapped by the FCC with fines totaling more than $83 million connected with violations tied to the government-subsidized Lifeline program.
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