Wal-Mart de Mexico Ordered to Pay Fine for Violations in Supplier Negotiations

Dow Jones12-14

By Anthony Harrup

MEXICO CITY--Retailer Wal-Mart de Mexico said the country's antitrust regulator fined the company 93.4 million Mexican pesos ($4.6 million) for anticompetitive practices involving suppliers.

Walmex, as the unit of Bentonville, Ark.-based Walmart is known, said Friday that federal competition watchdog Cofece determined the company had engaged in a single case of monopolistic practice regarding negotiations with suppliers.

The company said the regulator ordered remedies limiting Walmex's ability to negotiate certain, but not all, discounts with suppliers "even though they are negotiated and agreed with suppliers and are customary in the market and benefit consumers."

Walmex is Mexico's largest retailer with 3,065 stores in operation at the end of the third quarter. Regulators are concerned that its buying power over suppliers could curb competition in the retail sector.

The retailer has argued that its practices comply with Mexican laws and benefit consumers by keeping prices down. The company said Friday that it doesn't expect the commission's decision to have an effect on its business operations, and added that it intends to challenge the ruling.

"While Walmex is reviewing the specifics of the more than 900-page decision, based on our preliminary review, Walmex believes that Cofece's analysis is flawed and that Cofece erred in the application of the law," the company said.

Walmex shares were up 7.4% on the Mexican stock exchange, at 61.30 pesos, midday Friday.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

December 13, 2024 12:17 ET (17:17 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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