The Federal Economic Competition Commission (Cofece) sanctioned Walmart Mexico after determining that, for 13 years, the company used its market power to impose abusive conditions on its suppliers in the distribution of food, beverages, and hygiene and cleaning products.
According to Cofece, these illegal practices gave it undue advantages over other self-service stores, especially affecting small and medium-sized suppliers and harming competition in the sector.
Among the behaviors identified, Walmart imposed discretionary discounts on its suppliers, forcing them not to offer better conditions to other stores , which restricted competition and limited the possibility of other stores offering attractive prices, which impacted both suppliers and Mexican families.
Meanwhile, Cofece imposed a fine on Walmart and ordered measures that will be in effect for ten years, such as not retaliating against suppliers for their business relationships with other stores.
Walmart may also not impose prices or conditions on its suppliers that limit competition, not require information on prices or conditions that suppliers offer to other stores, and not apply discounts without the supplier’s express consent.
In addition, Cofece imposed obligations on Walmart to update internal policies and contracts to align with the resolution , establish a communication channel to report irregularities, and implement a compliance program on economic competition with a high-level official.
Cofece assured that these measures seek to guarantee fair competition in the market, allowing self-service stores to negotiate freely with suppliers and compete on equal terms to benefit Mexican consumers.
The agency will oversee compliance with the ruling for a decade, with the possibility of imposing fines of up to 8% of Walmart’s revenue for non-compliance.
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