Amazon Denies Monopolistic Threat in Mexico Amid Regulatory Scrutiny

Amazon has pushed back against allegations suggesting its dominance in Mexico’s e-commerce landscape poses a threat to fair competition. The controversy emerged following a report by Mexico’s antitrust regulator, Cofece, which implicated both Amazon and its rival Mercado Libre in potentially stifling market entry for smaller players.

Cofece’s preliminary findings, unveiled on Tuesday, underscored the alarming reality that Amazon and Mercado Libre collectively command over 85% of transactions and sales within Mexico’s burgeoning e-commerce sector. This concentration, as highlighted by the regulator, could erect significant barriers for new entrants seeking to gain a foothold in the market.

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Amazon swiftly responded to these assertions, affirming its cooperation with Cofece while vehemently defending its business practices. Fernanda Ramo, Legal Director of Amazon Mexico, emphasized the company’s commitment to fostering competition and innovation in the Mexican retail landscape. Ramo asserted in an emailed statement that Amazon’s presence in Mexico has catalyzed enhanced selection, competitive pricing, and expedited delivery services, benefitting both consumers and sellers nationwide.

Similarly, Mercado Libre expressed its willingness to engage with Cofece, assuring that any formal resolution by the regulatory body would not entail economic sanctions. The company underscored that no investigation into monopolistic behavior has been initiated.

The entry of the U.S. e-commerce giant Amazon into Mexico dates back to 2013, with the launch of its marketplace following two years later. Meanwhile, Mercado Libre, a formidable competitor operating in the Latin American region since 1999, has established its presence in Mexico, further intensifying competition within the market.

Source: XM