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Walmex Awaits Antitrust Ruling as Mexican Regulator Probes Alleged Practices

By  |  October 8, 2024

Walmart de México y Centroamérica (Walmex), the Mexican division of U.S. retail giant Walmart, anticipates an imminent decision from Mexico’s antitrust regulator, Cofece, regarding an ongoing investigation into alleged anti-competitive practices, according to a senior company executive.

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    Javier Treviño, Walmex’s Senior Vice President, announced on Tuesday that the company expects Cofece to deliver its final ruling “in just a few days or weeks,” during a press conference, as reported by Reuters. The investigation, launched by Cofece, examines whether Walmex has engaged in practices that undermine competition by dictating prices and terms to suppliers or distributors in the country.

    The probe is part of a broader effort by Cofece to address market dominance in sectors where competition is scarce, a situation that has drawn increasing attention in Mexico. According to Reuters, the regulator has been scrutinizing Walmex’s interactions with its supply chain, raising concerns that the company may have exerted undue influence over pricing, a move that could stifle smaller competitors.

    Related: Mexican Antitrust Authority Nears Decision on Walmart Probe

    However, Ignacio Caride, Walmex’s top executive, reaffirmed the company’s compliance with Mexican laws, stating, “We have always acted in line with the law.” Caride emphasized that Walmex operates within legal frameworks and maintains that the company has not breached any regulations, despite the accusations levied by the watchdog.

    Walmex, the largest retailer in Mexico, faces significant implications from Cofece’s upcoming ruling. Should the company be found guilty of anti-competitive behavior, it could face substantial fines and be forced to alter its business practices.

    Source: Reuters