Mexico: Issued preliminary finding in competition investigation into e-commerce market

On 13 February 2024, the Mexican Competition Commission (Cofece) issued a preliminary finding in its investigation (IEBC-001-2022) into competition barriers in the e-commerce market. Cofece found, on a preliminary basis, the absence of effective competition conditions in the market due to high concentration, network effects, and further barriers, such as technological capacity and advertising investment. Possible barriers to entry include artificiality in components of some loyalty programmes, lack of transparency in offer management, and preferences for own logistic solutions. Corrective measures could include dissociating memberships from streaming services or modifying the criteria of offer management algorithms, which could be implemented if the preliminary finding is confirmed.