Walmex, the Mexico and Central America unit of Walmart, is set to face an anti-trust panel for allegedly engaging in monopolistic practices.
In a statement, the retailer said that the Comisión Federal de Competencia Económica (COFECE), Mexico’s competition regulator, launched a “quasi-jurisdictional process” against its main Mexican subsidiary following a three-year investigation.
The process is related to the supply and wholesale distribution of consumer goods and retail marketing of such goods and related services.
Walmex has been given 45 business days to submit arguments and evidence in its defence to the COFECE.
The retailer, which operates 2,890 locations in Mexico, is confident that it complies with applicable law to offer its customers the best prices, quality and assortments.
In a statement, Walmex said: “This is the first opportunity for Walmex to defend itself against the Investigative Authority allegation. Since this notice was just received and it entails the initiation of a quasi-jurisdictional administrative procedure, potentially followed by proceedings in court and other instances, Walmex is not able to predict at this time what effects these procedures will have on its financial condition, results of operation and ability to operate as it does.”
For the moment, the retailer is unable to predict any impact on its finances and operations.
In its financial statement for the second quarter of fiscal 2023, Walmex said that its consolidated total revenue increased by 9.3%.
The retailer saw its same-store sales grow 8.5% in Mexico and 9.5% in Central America.
Earlier this year, Walmex revealed plans to invest around 27.1bn pesos ($1.5bn) to strengthen operations.
