Authority responsible for ensuring free competition in Mexico Coffeedetermined Monday that Walmart did illegal behavior in the supply and distribution of products such as food and beverages, among others, and imposed sanctions for a period of 10 years.
Cofece said in a statement that it will monitor compliance with the measures for ten years and that it may ok Wal-Mart Mexico (Walmex) with a share of up to 8% of sales if you don’t comply.
“The Plenary Meeting of the Federal Commission for Economic Competition (Cofece) found that Walmart engaged in illegal practices in the supply and distribution of food, beverages, hygiene products and household chemicals in Mexico,” the note said.
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“Walmart had a system that allowed discretionary discounts to force its suppliers not to offer better terms. prices and conditions for other self-service stores, which seriously affects them, especially small and medium-sized ones.”
The organization noted that for 13 years the company used its “market power” to impose abusive terms for their suppliers and gain illegal advantages over your competitors.
Among the prohibitions that Cofece has imposed for ten years are requiring its suppliers to provide information about the prices or terms they offer to other businesses, and requiring or impose prices on your suppliers, among other things, as well as the implementation of a compliance program.
The company had already announced on Friday that it had been fined approximately $5 million for engaging in monopolistic practices against its distributors and that will challenge the decision holding that the competition authority’s analysis was “flawed” and that the agency “made errors in its application of the law.”
Investigation against Walmart division This started in mid-2020 after a complaint from a competitor. Chedraoui on alleged monopolistic practices regarding the market for wholesale supplies and distribution of consumer goods, their retail sales and related services.
Walmex shares fell 2.75% to 59.71 pesos on the Mexican stock market (Reuters).
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
