MEXICO CITY (AP) — Mexico’s antitrust regulator on Monday imposed special conditions for 10 years on Walmart’s Mexican unit for allegedly pressuring suppliers.
The decision came after the Federal Competition Commission imposed a related fine of $4.6 million for alleged monopolistic conduct. Walmart Mexico said last week it planned to appeal the fine.
The company had no immediate comment on Monday’s announcement.
The Federal Competition Commission said Walmart is not allowed to pressure suppliers to provide any discounts to competitors.
“For 13 years, Walmart used its market power to impose abusive conditions on its suppliers and gain an unlawful advantage over its competitors,” the commission wrote in a statement.
“Walmart has a system that allows it to implement discretionary discounts that force its suppliers not to offer better prices or conditions to other stores, severely impacting them, especially those small and medium-sized stores,” the statement said.
Walmart Mexico, by far Mexico’s largest retail chain, called the case unfair and claimed it contained “an error in the application of the law.”
The soon-to-be-defunct antitrust agency imposed the fine after at least one rival chain accused Walmart of using its vast buying power to obtain discounts that put other sellers at a disadvantage.
Shares of Walmart Mexico fell about 2.5% on the Mexican Stock Exchange on Monday.
