México | Platform Competition: Cofece under the spotlight

Summary

The Federal Economic Competition Commission (Cofece) preliminarily determined that there are no conditions of effective competition in the retail e-commerce market (marketplaces) in Mexico, proposing a series of corrective measures in order to restore conditions of effective competition.

Key points

• Key points:
• In Mexico, e-commerce sales reached 5.28 billion pesos (mmdp) in 2022 according to local studies.
• Changes of individuals' consumption behaviours during the COVID-19 pandemic popularized these marketplaces.
• The study of these markets, characterized by their network effects, requires a “two-sided” approach.
• The joint market share of Amazon and Mercado Libre in Mexico accounted for 85% of transactions on the seller side and 61% on the buyer side in 2022
• Economic foundations of competition aims at promoting efficiency and innovation in markets through competition within the relevant market.

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