Mexico’s Federal Economic Competition Commission (Cefece) has determined that Walmart de Mexico engaged in a monopolistic practice regarding the relationship with “contributions from suppliers,” according to a statement from the company.
Walmex, as Walmart’s Mexican unit is known, said the antitrust body was divided on the decision. The company faces a fine of 93.4 million pesos ($4.6 million). The penalty stemmed from the resolution issued on December 12.
Cofece interviewed suppliers and other retailers to determine whether Walmex engaged in unfair practices in areas such as wholesale supply, distribution and retail operations.
Walmex executives have criticized the process, saying the investigation lacked transparency. In Friday’s statement, the company said it believes “the analysis is incorrect and that Cofece made errors in the application of the law” and that it will challenge the decision.
The company said the resolution includes restrictions related to two of the four contributions under investigation, even if these are common in the market. Despite this, it assured that it will continue to operate for the benefit of its customers.
“Walmex is disappointed by this decision, but will continue to work collaboratively with its suppliers to ensure business continuity, complying with the Cofece resolution, while we challenge the decision,” it said.
Walmex reported revenues of almost 46 billion last year and employs about 200,000 workers in Mexico, making it one of the largest employers in the country.
Cofece and other autonomous bodies to disappear
Last month, Congress approved a bill to dismantle autonomous government watchdogs, including Cofece and other regulators, which may complicate the application of the resolution. Antitrust measures will now be overseen by a decentralized agency in the Ministry of Economy.
The National Institute for Transparency, Access to Information and Protection of Personal Data (INAI), the Energy Regulatory Commission (CRE) and the Federal Telecommunications Institute (IFT) will also disappear.
Source: elfinanciero
