Amazon and Mercado Libre criticised for limiting seller mobility in Mexico
COFECE finds Amazon and Mercado Libre favour sellers using in-house logistics, raising competition concerns.
Mexico’s competition watchdog has accused Amazon and Mercado Libre of erecting barriers that limit the mobility of sellers in the country’s e-commerce market. The two platforms reportedly account for 85% of the seller market.
The Federal Economic Competition Commission (COFECE) stated that the companies provide preferential treatment to sellers who utilise their logistics services and fail to disclose how featured offers are selected, thereby restricting fair competition.
Despite finding evidence of these practices, COFECE stopped short of imposing corrective measures, citing a lack of consensus among stakeholders. Amazon welcomed the decision, saying it demonstrates the competitiveness of the retail market in Mexico.
The watchdog aims to promote a more dynamic e-commerce sector, benefiting buyers and sellers. Its February report had recommended measures to improve transparency, separate loyalty programme services, and allow fairer access to third-party delivery options.
Trade associations praised COFECE for avoiding sanctions, warning that penalties could harm consumers and shield traditional retailers. Mercado Libre has not yet commented on the findings.
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