A PYMNTS Company

Mexico: Monopolies cause 98% overcharges on consumer products, study reveals

By  |  October 16, 2018

Lack of competition and market monopolies cause Mexican households to pay a premium of up to 98.23% when buying consumer goods, including corn tortillas, bread, eggs, fruits and vegetables, medicines, and more, as well as services such as transportation. This is the conclusion from a study conducted by the Federal Commission for Economic Competition (COFECE).

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The rise in prices caused by lack of competition has a greater impact in the southwest of the country. Southern states with high poverty rates, such as Chiapas, Guerrero and Oaxaca, have seen a reduction in purchasing power of up to 47% compared to their counterparts in northern states.

    The escalation is mainly due to the lack of economic competition since “a company can raise prices and retain its customers because it has few or no competitors,” the study says on the impact of market power on the welfare of Mexican households. The study covered 46 cities across the country, distributed over 8 geographical regions. For its calculations COFECE used data from the National Institute of Statistics, Geography and Informatics (INEGI) data from 2014.

    Full Content: Sin Embargo
    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.