
Walmart de México y Centroamérica to Challenge COFECE’s Decision on Supplier Contributions
On Thursday, December 12, Walmart de México y Centroamérica (Walmex) announced that the Comisión Federal de Competencia Económica (COFECE) had issued a resolution regarding the company’s supplier contribution practices. According to COFECE’s governing body, in a split decision by its commissioners, Walmex was found to have engaged in a single relative monopolistic practice concerning supplier contributions. As a result, COFECE imposed a fine of MX$93,366,000 (approximately US$5 million based on current exchange rates).
The resolution allows Walmex to continue negotiating most supplier contributions, with the exception of two specific types from the four originally under investigation. COFECE has restricted Walmex’s ability to implement these two contributions, despite the company arguing that they are customary in the market, mutually agreed upon with suppliers, and ultimately beneficial to consumers.
Walmex’s Response to the Decision
While Walmex is still reviewing the more than 900-page resolution, its preliminary analysis suggests significant concerns with COFECE’s findings. The company believes that COFECE’s analysis is flawed and that the decision involves errors in the application of the law. Walmex maintains that it has operated in compliance with all applicable regulations and emphasizes its commitment to benefiting Mexican families.
Walmex has also raised concerns over alleged irregularities in COFECE’s investigation and proceedings. Consequently, the company plans to challenge the decision. In the meantime, Walmex expressed disappointment with the outcome but affirmed its intention to collaborate with suppliers to ensure business continuity while adhering to COFECE’s resolution during the appeal process.
Commitment to Compliance and Collaboration
Walmex reiterated its dedication to maintaining strong relationships with its suppliers and ensuring its operations continue to align with regulatory requirements. The company views supplier contributions as an integral part of its business model, which helps deliver value to consumers and supports efficient supply chain operations.
Although the decision imposes certain limitations, Walmex aims to work within these restrictions without compromising its commitment to offering competitive pricing and quality products to Mexican families. The company is determined to protect its ability to negotiate with suppliers in a way that benefits all stakeholders, including consumers.
Potential Impact and Forward-Looking Statements
Walmex assures its shareholders and the public that the resolution will not disrupt its overall business operations. The company has disclosed that it will pursue all available legal avenues to challenge the decision and remains optimistic about a favorable outcome.
Walmart Inc., the majority owner of Walmex, highlighted that any references to the company’s plans to appeal the decision are considered forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These statements reflect management’s expectations based on currently available data but are subject to risks, uncertainties, and future events that could affect actual results.
About Walmart de México y Centroamérica
Walmart de México y Centroamérica is a leading retailer in the region, committed to offering value-driven products and services to its customers. As part of Walmart Inc., the company operates under the principles of sustainability, innovation, and customer-centricity.
About Walmart Inc.
Walmart Inc. (NYSE: WMT) is a globally recognized retailer with a mission to help people save money and live better. With fiscal year 2024 revenues of $648 billion, Walmart operates over 10,500 stores and numerous eCommerce platforms across 19 countries, serving approximately 255 million customers weekly. The company employs around 2.1 million associates worldwide and is a leader in sustainability, corporate philanthropy, and employment opportunities.
For more information, visit corporate.walmart.com, follow Walmart on Facebook at facebook.com/walmart, on X (formerly Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.
Additional Information
Further details about this process and Walmex’s response can be found on the company’s website at www.walmex.mx.
This revised article condenses the information to 650 words, providing a clear overview of the COFECE decision, Walmex’s response, and the broader implications. It maintains a formal tone while emphasizing Walmex’s perspective and commitment to compliance.