Walmart’s Mexico Unit To Appeal $4.6-M Fine Over Monopolistic Practices

Walmart’s Mexico subsidiary announced plans to appeal a $4.6 million fine issued by Mexico’s Federal Competition Commission for alleged anti-competitive practices, the Associated Press (AP) reported.

Walmart is Mexico's largest retail chain. I Photo: Walmart

The fine, based on accusations from at least one rival retailer, alleges that Walmart leveraged its purchasing power to secure discounts that disadvantaged other sellers. Walmart, Mexico's largest retail chain, denied the allegations, calling the commission’s decision “incorrect” and claiming errors in the application of the law.

While the company has agreed to comply with the commission’s ruling, it stated its intention to challenge the decision.

The Federal Competition Commission, which issued the fine, is slated for elimination as part of government cost-cutting measures. Despite the controversy, Walmart’s shares on the Mexican stock exchange rose 7.5% on Friday.