Mexico City — The Federal Economic Competition Commission (COFECE) has concluded an investigation into the retail e-commerce market in Mexico, finding that Amazon and Mercado Libre, the two largest players in Mexico’s online retail space, create behavioral barriers that limit seller mobility between platforms.
According to COFECE, these barriers reduce competitive pressure and could distort the choices available to consumers.
A central concern is the lack of transparency around the “featured offer” mechanism, a crucial tool for boosting sales on e-commerce platforms. Sellers are not given clear information on how products are selected to appear as the prominent offer, leaving them at a disadvantage when trying to optimize their sales strategies, the authority said.
The commission also noted that both Amazon and Mercado Libre grant higher visibility to sellers who use their in-house logistics services. This practice could effectively tie visibility to the purchase of ancillary services, further restricting sellers’ freedom to choose the most cost-effective logistics solutions and potentially raising costs for smaller businesses.
While COFECE’s plenary confirmed the existence of barriers to competition on the seller side of the market, it stopped short of imposing corrective measures. Officials cited a lack of consensus on whether such remedies would deliver clear benefits for consumers and small and medium-sized enterprises.
Despite the absence of sanctions, the findings mark an important step in assessing competition dynamics in Mexico’s fast-growing e-commerce sector. The commission stressed that the investigation provides valuable evidence for future policymaking and offers both public and private stakeholders an opportunity to promote a more competitive digital marketplace.
Source: https://www.cofece.mx/cofece-concluye-investigacion-en-comercio-electronico-minorista/
