The punishment of the competition regulator against Walmart de México (Walmex) for engaging in monopolistic practices is equivalent to barely 0.04% of the total income that the chain generated in the country in the third quarter of the year.
This Friday, the country’s main retailer reported that the Federal Economic Competition Commission (Cofece) determined that the company had engaged in monopolistic practices after an investigation of just over four years.
He added that as a consequence, the regulator had imposed a penalty of 93.4 million pesos (mp), but announced that he would challenge the measure.
Walmart de México reported revenues in the country during the third period of the year for 190,018 million pesos, a growth of 6.1% compared to the same period last year, according to its quarterly financial statement.
On the other hand, revenues in its Central American markets totaled 40,176 million pesos, an expansion of 4.6% at an annual rate.
Read: Cofece sanctions Walmart with 93.4 million pesos for monopolistic practices
The fine imposed is not material for the company, but it is relevant that it challenges the decision on the relationships it will maintain with its suppliers and the usual practices of the industry in order to guarantee that its value proposition will remain competitive and profitable, considered Marcela Muñoz. , Fundamental Food, Consumer and Commerce analyst at VectorAnálisis, cited by Reuters.
The investigation against Walmart de México began in mid-2020, after a complaint from its competitor Chedraui, and points to relative monopolistic practices in the wholesale supply and distribution market for consumer goods, their retail marketing and related services.
In its announcement, Walmart de México stated that the authority’s analysis “is incorrect,” and that the agency “made errors in applying the law.”
Read: Walmart de México records historic results after El Buen Fin
Walmart de México shares soar 7.53%
The shares of Walmart de México on the Mexican Stock Exchange rose 7.53% after the announcement it made about the Cofece decision.
It was the largest percentage advance since at least 2020, according to data from Investing.com.
With information from Francisco Rivera and Reuters
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