Amazon denies it is stifling competition after Mexican regulator raises concerns

MercadoLibre

14/02/2024 16:27

MEXICO CITY, Feb 14 (Reuters) - Amazon on Wednesday
refuted claims it poses a threat to competition in Mexico's
e-commerce market, a day after a regulator report alleged the
company and rival Mercado Libre could limit new entrants to the
country's burgeoning industry.  
    Mexican antitrust regulator Cofece on Tuesday said the two
companies together control more than 85% of transactions and
sales in the sector, presenting a "practically insurmountable
challenge for the expansion of the smaller players."
    Amazon said the company was aware of Cofece's preliminary
report and was closely collaborating with the regulator.
    "Our pro-competitive practices in Mexico spur competition
and innovation across the retail industry, and have produced
greater selection, lower prices, and faster delivery speeds for
customers and greater opportunities for sellers across the
country," Fernanda Ramo, Legal Director of Amazon Mexico, said
in an emailed statement.
    Mercado Libre also pledged its cooperation with Cofece on
Tuesday, stressing that even if Cofece's governing board
eventually issues a formal resolution, it would not involve any
economic sanctions since no investigation into monopolistic
practices has been launched.
    U.S. behemoth Amazon entered Mexico in 2013 and launched its
marketplace there two years later. Mercado Libre, its South
American rival, has been operating in Latin America's
second-largest economy since 1999.
    

 (Reporting by Kylie Madry
Editing by Drazen Jorgic, Kirsten Donovan)
 ((drazen.jorgic@tr.com; Reuters Messaging:
drazen.jorgic.thomsonreuters.com@reuters.net))