Walmart Mexico is being investigated by Mexico’s federal competition authority (COFECE) for antitrust behavior in the supply and distribution of wholesale products and retail of various goods and services.
The company refuted the claims and said that it has always worked in accordance with applicable laws and that it has played an instrumental role in lowering product prices for consumers, according to Reuters. Mexico is Walmart’s single largest international market with over 2,442 locations as of last year.
In a study released earlier this month, Cofece highlighted the need for more competition in the Mexican retail market and identified Walmart, Soriana and Chedraui as the key players that held a significant national presence.
“High market concentration favors the purchasing power of large self-service chains compared to their smaller suppliers, which could distort competition in supplier markets,” the Cofece study said.
Cofece declined to comment on Walmart’s statement.