Mexico’s Walmex expects final ruling from antitrust watchdog soon
5:52 pm Tuesday, October 08th, 2024
By Diego Oré
MEXICO CITY (Reuters) -Mexico’s Walmex, the local unit of U.S.-based retail giant Walmart, expects antitrust watchdog Cofece to soon announce its final ruling stemming from a probe into alleged anti-competitive practices, a senior executive said on Tuesday.
“It will probably happen in just a few days or weeks,” Javier Trevino, Walmex’s senior vice president for corporate affairs, told reporters during a press conference.
Later Alberto Sepulveda, the firm’s Legal & Prevention senior vice-president, estimated the resolution will be announced “before the end” of October.
Cofece declined to comment on the timing of a ruling.
The investigation against Walmex, Mexico’s largest retail chain, began in 2020 after its competitor Chedraui filed a complaint accusing the company of possible monopolistic practices.
Cofece has accused Walmex of imposing prices and terms on its suppliers or distributors, in a case that centers on a lack of competition in many parts of Mexico.
The company’s top executive, Ignacio Caride, said on Tuesday that Walmex has not violated any legal terms.
“We have always acted in line with the law,” he said.
The antitrust watchdog alleged that small businesses are affected by large chains that impose harsh conditions, such as delaying payments or requiring sellers to assume the risk of unsold products.
Sepulveda however said that Cofece did not allow Walmex to have an “adequate defense” throughout most of the investigation and described the process as a persecution of the company.
If found guilty, Walmex could be subject to fines and restrictions, as well as possible lawsuits from third parties.
An unfavorable resolution could force Walmex to adjust its operations but would not like affect the company’s already announced investments.
“We will have to adapt to continue operating,” Caride said. “We would be concerned if they put certain limits on us that would make our prices go up.”
(Reporting by Diego Ore; Editing by Sarah Morland and Sonali Paul)
