MEXICO CITY (AP) — Mexico’s anti-monopoly regulators on Monday imposed special conditions for a 10-year period on Walmart’s Mexican subsidiary for allegedly squeezing suppliers.
The decision follows a related $4.6 million fine imposed by regulators, known as the Federal Competition Commission, for alleged monopolistic practices. Walmart de Mexico said last week it plans to appeal the fine.
The company did not immediately comment on Monday’s announcement.
The Federal Competition Commission said Walmart should refrain from pressuring suppliers to grant discounts to competitors, among other things.
“For thirteen years, Walmart used its market power to impose unlawful conditions on its suppliers, gaining illegal advantages over its competitors,” the commission wrote in a statement.
“Walmart had a system in place that allowed it to impose discretionary discounts to force its suppliers not to give better prices or terms to other stores, which seriously affected them, especially small and medium-sized stores,” the statement said.
Walmart de Mexico – by far the largest retail chain in Mexico – described the case as unfair and claimed it contained ‘errors in the application of the law’.
The soon-to-be-disbanded anti-monopoly agency imposed the fine after at least one rival retailer accused Walmart of using its substantial purchasing power to extract discounts that disadvantage other sellers.
Shares of Walmart de Mexico fell about 2.5% on the Mexican stock exchange on Monday.
