Mexico Threatens to BAN Sales of Samsung, Motorola After Companies Blocks People’s Phones

In recent months, an unusually high number of mobile manufacturers have proposed to combat the gray market for mobile equipment in Mexico, through the blocking of cell phones not approved by the regulator of that country, and that were acquired from suppliers—and importers— unofficial.

Among the companies that joined this initiative are ZTE , Motorola , OPPO , Samsung and—more recently— Xiaomi . Either through notifications to affected users, or by taking more drastic measures, such as completely blocking the computer.

But where did all this come from?

The background of cell phone blocking

With the rise of online stores – such as Amazon, Mercado Libre, Doto or AliExpress – a kind of alternative market became popular in Mexico for many purchases related to mobile devices, gadgets and devices from other countries.

This was mainly due to quite marked differences in prices with respect to the official offer – department stores and mobile phone providers – or, with equipment that was not possible to acquire in the country, precisely because it was not sold there by any means.

This alternative, parallel—or gray—market, largely aware of the limitations regarding the use of mobile networks in the country, the cellular bands included, or the impossibility of activating certain functions available in certain markets, prioritized the low cost of these devices, without these inconveniences being a major problem for its buyers. Until very recently…

ZTE, the ones who started it all

At the end of October 2022 , the Chinese company ZTE began sending notifications to users of equipment purchased on the gray market, with the purpose of informing them that their mobile devices would not work correctly in Mexico, because they were not approved for the networks of that country.

The reason? As they are not designed for the local market, ZTE mentioned that the company “ could not be responsible for compliance with the standards, approval protocols or applicable warranty policies ,” and that said notification—and subsequent deactivation—is specifically for those terminals of which “ it does not recognize their import .”

Although the measure had some impact, in practice it had very little impact, beyond the communities themselves vetoing the purchase of these devices, like many external sellers.

Motorola, and its campaign against the gray market

In the middle of this year, Motorola Mexico began a strong awareness campaign so that consumers looking to buy a new terminal from the brand did so through authorized distributors in the country, arguing that it was “ a security risk for users.” ” if they didn’t.

Likewise, owners of imported equipment began to receive a notification that directed to the official website in Mexico , with a more or less detailed explanation of why the alert was received, although contradictory and unsatisfactory in many of the points.

Cell phone blocking begins

Subsequently,—and to complicate things— Motorola announced that all mobile phones imported—and activated—in Mexico after July 27, 2023, will be subject to total blocking.

To do this, they will receive two notifications, where one of them will arrive on the same day of activation, and the second, 10 days later. After that time, the device will be completely disabled, without the possibility of accessing the applications, functions or files on it, only available for emergency calls. A paperweight , in other words.

The only exceptions to this rule are devices activated in the country of origin and used in Mexico, as well as those activated before the specified date. In the case of the former, they will only receive a notification informing them that their devices may not work with Mexican networks.

As a bittersweet compensation for damage, Motorola offers a 30% coupon on the purchase of a new smartphone within the national territory, after validating the IMEI of the affected device, which the user must send by email, using a special form on the official website. This code will be valid for 30 days from the date of issue.

OPPO, the second manufacturer to announce lockdowns

The well-known Chinese company OPPO was the second manufacturer to join these blockades of imported equipment, according to the information that Xataka México obtained from Eduardo Morones , the CEO of the company in the country, on October 3.

In the interview, it was confirmed that OPPO would apply blocks to irregularly imported devices, and that this measure would be implemented before the end of the year. In addition, the CEO took the opportunity to declare that the gray market is, essentially, a fraud towards consumers, but that due to OPPO Mexico ‘s business model – which sells mainly to large distributors – it does not have a significant impact on sales within from the country.

The case of OPPO is somewhat interesting, taking into account that this was one of the manufacturers that benefited the most from the gray market to increase its popularity during its beginnings, like other Chinese brands – such as Xiaomi, for example .

Samsung and the drastic blocking of cell phones

For its part, Samsung decided to get on the cell phone blocking train, announcing measures similar—and even more aggressive—than those of previous manufacturers. Specifically, they began sending retroactive notifications to all imported devices activated from September 21, 2023, starting with the blocks from October 11, 2023.

As stated in a press release related to the subject , all affected devices cannot be regularized in any way, and will be blocked in their entirety. This implies that, if users have not made a backup of the information contained, the device will not allow them to access it, or the applications or tools.

Like Motorola, and in a bitter attempt to calm the waters, Samsung Mexico also offers a 30% discount to purchase a new device through its official store, by contacting the company by telephone and providing the IMEI of the device. affected cell phone, which can be exchanged no later than December 31 of this year.

Xiaomi began to notify users, but without disabling devices

As with OPPO , the case of Xiaomi is especially curious, since its success in the country is mainly due to the gray market and equipment imported unofficially from China. Although minor, the company has also taken some measures recently regarding the gray market.

Specifically, devices purchased outside of official suppliers have received a notification stating that “ Your device may not be the official version in the region ,” and that “ this may affect functions of your device, such as connection to the telephone network contracted by [the user] “, where the only recommendation given is to contact the distributor for more help in this regard.

Xiaomi speaks out on the issue

On social networks , as well as on the community forum, a statement issued by Xiaomi México is circulating , where they mention that their intention is only to inform their users, and not to execute blocks like other brands, and that, if there is any doubt, the Users will be able to contact them to resolve them.

And the regulatory entities?

Initially, the Federal Telecommunications Institute, which is the body in charge of everything related to telecommunications in Mexico, launched a campaign warning of the dangers of acquiring equipment on the gray market. Of course, he did not comment on the specific issue of blockades.

For its part, the Federal Consumer Prosecutor’s Office – also known as Profeco – also began a similar campaign, which sought to raise awareness of the risks and disadvantages involved in purchasing equipment on the gray market – or parallel imports, as it was. named in the infographics—as well as its non-compliance with the Official Mexican Standard, guarantees, labeling and tax collection.

The blockade… the blockade

Yesterday, both Profeco and the IFT called for the immediate suspension of all measures imposed by manufacturers to block irregularly imported mobile equipment, because these violate the rights of consumers and end users.

In addition, they launched a call to form a working group in which all the actors involved in this issue participate, to propose measures and implement actions against the gray market, without leaving the consumer aside.

A not so positive outlook regarding the blocking of imported cell phones

Beyond the section of compliance with the Official Mexican Standard , this movement has turned out to be a real headache for people who acquired equipment within the gray market, although time will tell us how the sales trend changes for manufacturers in Mexico, after the —expected— negative reaction from the community.

On the other hand, there is the possibility that Mexico could implement measures similar to those that Chile used at the time for the approval of foreign equipment, and in a certain way, that a special seal could be created to simplify identification—by users. —, of devices or equipment approved for use in the country.

Unfortunately, it does not seem that manufacturers are going to slow down, even after the blockade imposed by Profeco and the IFT in Mexico, nor can we rule out the possibility of it happening secretly in other countries.

What, if we are sure, is that a precedent has been set in many aspects, with some positive points – such as the latest intervention by two regulatory bodies in Mexico – but many other negative points, which could threaten the rights of consumers. henceforth.