Walmart is accused of a monopoly in Mexico

Walmart is accused of a monopoly in Mexico and will now face an administrative process to defend its position. Walmart’s unit in Mexico announced on Friday that it will undergo an administrative procedure for “alleged relative monopolistic practices.”

Walmart is accused of a monopoly in Mexico due to practices related to the wholesale supply and distribution of consumer goods.

Walmart de Mexico stated in a press release that the Federal Economic Competition Commission (Cofece) had notified the company of the commencement of an “administrative procedure conducted in the form of a trial” following a three-year investigation.

“Walmex (Walmart de Mexico) is confident that it has always acted in accordance with applicable law to ensure the best prices, quality, and assortment for its customers,” the company said in a statement, also noting that it could not predict the impact on its finances and operations.

The retail company mentioned that it has 45 business days to present arguments and evidence in its defense, after initially being notified in 2020 that it was under investigation.

The regulator has emphasized the need for the Mexican retail market to allow smaller companies to participate fairly alongside the large chains. Walmart is among the largest retailers in Mexico, with 2,890 stores in the country.

Walmart is accused of a monopoly in Mexico: Background

On November 4, 2020, Cofece issued a statement warning that the structure of the self-service store channel was concentrated among a few players.

Therefore, there were regulatory obstacles at the state and municipal levels that hindered the expansion of regional chains.

Walmart de Mexico asserts that its actions have always been in accordance with current legislation and that its participation in the Mexican market has consistently resulted in lower prices than the competition, benefiting lower-income families.

“Walmex’s actions have always complied with applicable legislation, and its participation in the Mexican market has consistently led to lower prices for consumers, particularly benefiting lower-income Mexican families and remote areas of the country that have not been served by others,” the group clarified.

Also read: Corn Imports in Mexico: Another Year on the Rise.