Mexico's Antitrust Showdown: Cofece vs. Walmex

Mexico's antitrust watchdog, Cofece, has fined Walmart's Mexican unit, Walmex, over monopolistic practices concerning suppliers. The fine was set at 93 million pesos for imposing unfair conditions. Walmex plans to appeal, while Cofece remains firm on monitoring compliance and highlights potential further fines for non-compliance.

Mexico's antitrust watchdog, Cofece, announced on Monday that it could impose fines on Walmart's local unit, known as Walmex, amounting to up to 8% of its income. This follows a resolution that prohibits the retailer from certain illegal conducts linked to its monopolistic practices in supplier dealings.

The watchdog's ruling, reported earlier by Walmex, includes a fine exceeding 93 million pesos, citing Walmart's 13-year practice of exerting market dominance to enforce unfair terms on suppliers and thereby gaining undue advantages over rivals. Cofece prohibited several of Walmex's practices, ensuring fair play in Mexico's retail market.

Walmex has expressed its disagreement with Cofece's analysis and plans to appeal the regulatory decision. Meanwhile, Cofece has assured to monitor compliance over the next decade, threatening substantial fines for any breach of the resolution against Walmex's present business conduct with suppliers.

(With inputs from agencies.)