Walmart’s wholly-owned subsidiary, Walmart de Mexico, is under investigation for price-fixing. Mexico’s Economic Competition Commission said the retailer has been accused of price rigging with suppliers or distributors, which could distort the process of free competition.
Walmart issued a statement saying it is confident that it has “always complied with applicable laws to ensure best practices, quality and selection to our customers.” The retailer added that it could not predict the impact this investigation and its results might have on its financials.
The investigation follows a three-year investigation by Mexico’s antitrust regulator, Cofece. Walmart Mexico was first informed of the investigation in 2020 and now has 45 days to submit arguments and evidence in its defense. The commission’s seven-member board will consider the findings of government investigators and Walmart’s lawyers and issue a ruling within 90 days.
The regulator said that large retail chains imposing conditions on suppliers poses risks to small businesses that cannot compete.
If Walmex is found to have violated competition laws, regulators could impose fines of up to 8% of the company’s annual revenue in Mexico. Walmex reported that his annual revenue from operations in Mexico and Central America was $45 billion. The company is scheduled to announce its third quarter financial results on October 25th.
Walmart operates 2,804 retail stores in Mexico, one of the fastest-growing and best-performing markets in the company’s international portfolio.