Walmex Challenges Cofece's Monopolistic Ruling

Mexico's antitrust authority, Cofece, has fined Walmex about $4.6 million for monopolistic practices with suppliers. Walmex plans to appeal the ruling, arguing the analysis was incorrect. The investigation focused on retail competition issues, but Walmex doesn't expect this decision to affect operations significantly.

The Mexican antitrust authority, Cofece, has imposed a significant fine on Walmex, the Mexican arm of U.S. retail giant Walmart, citing monopolistic practices involving suppliers. The decision requires Walmex to pay a fine exceeding 93 million pesos, equivalent to approximately $4.6 million.

In its response, Walmex expressed disappointment at the ruling, claiming the regulator's analysis was flawed and indicating plans to appeal the decision. While adhering to Cofece's resolution, the company maintains that the judgment will not significantly impact its operational activities.

This ruling stems from a comprehensive investigation into Walmex that spanned over four years. The regulator accused the retail behemoth of setting prices and conditions for suppliers or distributors, a move that reportedly stifled competition in Mexico's retail sector. Notably, Walmex can still negotiate with its suppliers, save for two specific cases highlighted in the inquiry.

(With inputs from agencies.)