Walmex Faces Massive Fine Over Antitrust Violations

Mexico's antitrust watchdog, Cofece, has threatened to fine Walmex up to 8% of its income if it fails to adhere to a resolution banning certain illegal practices. Cofece fined Walmex over 93 million pesos for monopolistic practices, which Walmex plans to appeal against.

The Mexican antitrust regulator, Cofece, has issued a stern warning to Walmart's Mexico unit, Walmex, threatening a fine of up to 8% of its income if it disregards a resolution against engaging in unauthorized activities.

The regulator's announcement follows Walmex's fine of over 93 million pesos, imposed last Friday, for conducting monopolistic practices with its suppliers. Cofece accused Walmex of using its dominant market position to enforce unfair conditions, gaining unlawful advantages over competitors.

Walmex has contested the ruling, planning to appeal based on its belief that Cofece's analysis is flawed. In the meantime, Cofece has restricted Walmex from penalizing suppliers who engage with other commercial entities and from determining or pressuring supplier pricing negotiations.

(With inputs from agencies.)