Mexican regulators name Amazon and MercadoLibre for suspected unfair competition
The Mexican Federal Economic Competition Commission (COFECE) recently concluded that Amazon and MercadoLibre have created significant competitive barriers for third-party sellers on their platforms. COFECE determined that these two e-commerce companies lack transparency in how they select recommended products and provide greater exposure for sellers using their own logistics services, which is seen as a significant disadvantage to other sellers. Specifically, COFECE's findings indicate that Amazon and MercadoLibre have not clearly communicated the criteria used to determine which sellers' products can be recommended. Notably, Amazon and MercadoLibre together account for over 85% of total online sales in Mexico. Currently, neither company has faced regulatory penalties from COFECE. Fernanda Ramo, Amazon Mexico's Deputy General Counsel and Legal Director, stated in a media release: "We welcome COFECE's decision not to take corrective measures, which highlights the competitiveness of the retail industry in Mexico and the absence of competitive barriers."
According to the Zhitong Finance APP, the Federal Economic Competition Commission of Mexico (COFECE) recently concluded that Amazon (AMZN.US) and MercadoLibre (MELI.US) have created significant competitive barriers for third-party sellers on their platforms.
COFECE determined that these two e-commerce companies lack transparency in how they select recommended products and provide higher visibility to sellers using their own logistics services, which is seen as a significant disadvantage to other sellers. Specifically, COFECE's investigation found that Amazon and MercadoLibre did not clearly communicate the criteria used to decide which sellers' products could be recommended.
It is noteworthy that Amazon and MercadoLibre together account for over 85% of Mexico's total online sales. Currently, neither company has faced regulatory penalties from COFECE.
Fernanda Ramo, Amazon Mexico's Deputy General Counsel and Legal Director, stated in a media release: "We welcome COFECE's decision not to take corrective measures, which highlights the competitiveness of the retail industry in Mexico and the absence of competitive barriers."
