Walmart expects a resolution on possible monopolistic practices soon

The Mexican unit of the US retail giant Walmart expects that in very few days The antitrust regulator, the Federal Economic Competition Commission (Cofece), releases a final resolution on the investigation against the company for alleged monopolistic practices.

The investigation began in mid-2020 after a complaint filed by its competitor Chedraui and is related to possible relative monopolistic practices in the wholesale supply and distribution market for consumer goods, their retail marketing and related services.

Probably within a few days or weeks (the Cofece will announce the final verdict)declared yesterday the company’s chief vice president of Corporate Affairs, Javier Treviño, at a press conference.

Later, Alberto Sepúlveda, chief vice president of Legal and Prevention of the firm – known as Walmex – estimated that the resolution will be announced before closing of October.

Walmex, the largest private employer in Mexico, defended that it has always acted according to the law and maintains that it has no substantial power in the market.

The authority assures 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.

Sepúlveda said that Cofece did not allow Walmex a adequate defense when testing a large part of the investigation and described the process as a persecution of the organization against the signature, also present in Central America.

If found guilty, Walmex could be subject to fines, conduct restrictions, and even the possibility of affected third parties filing lawsuits for damages.

Since the investigation was made public in October of last year, Walmex shares have lost value and on Tuesday closed at 57.02 pesos, a reduction of 1.60 percent.