Amazon vs. Mercado Libre: Market Barriers & Competition
- Mexico's competition authority, Cofece, has persistent that amazon and Mercado Libre create obstacles for sellers on their platforms, yet it will not mandate corrective measures.
- Mexico's antitrust watchdog, Cofece (the Federal Economic Competition Commission), concluded that both Amazon and Mercado Libre engage in practices that hinder competition for sellers utilizing their platforms.
- The investigation, initiated earlier in the year, focused on the dominance of Amazon and mercado Libre within Mexico's rapidly growing eCommerce sector.
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Mexican Antitrust Watchdog Finds Competition Barriers on Amazon & Mercado Libre, But Takes No Action
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Mexico’s competition authority, Cofece, has persistent that amazon and Mercado Libre create obstacles for sellers on their platforms, yet it will not mandate corrective measures. The ruling follows an investigation revealing the two companies control 85% of the Mexican eCommerce market.
Key Findings and Context
Mexico’s antitrust watchdog, Cofece (the Federal Economic Competition Commission), concluded that both Amazon and Mercado Libre engage in practices that hinder competition for sellers utilizing their platforms. However, in a surprising move, Cofece announced on Friday, September 12, 2025, that it will not issue orders requiring the companies to change their behavior, Reuters reported.
The investigation, initiated earlier in the year, focused on the dominance of Amazon and mercado Libre within Mexico’s rapidly growing eCommerce sector. Cofece found that the two companies collectively account for 85% of total sales, creating a meaningful power imbalance.
Specific Barriers to Competition
While the specific practices identified by Cofece haven’t been fully detailed publicly, reports suggest they relate to issues such as:
- Favoritism towards own brands: Allegations that Amazon and Mercado Libre prioritize their own products in search results and promotions.
- Data usage: Concerns about how the platforms utilize seller data to develop competing products.
- Commission structures: Potential issues with commission fees and payment terms that disadvantage smaller sellers.
- Restrictions on cross-selling: Limitations on sellers’ ability to promote their products on other platforms.
It was reported in February that Cofece was investigating thes concerns, signaling a potential crackdown on anti-competitive practices. However, the final ruling represents a departure from expectations.
Industry Reaction and Implications
The decision has drawn criticism from some industry observers who argue that Cofece’s inaction will perpetuate the dominance of Amazon and Mercado Libre, stifling innovation and harming smaller businesses.
“Data shows that the Mercado Libre ecosystem increases economic activity, creates jobs and accelerates financial inclusion across the country,” said David Geisenhoffer, senior vice president of Hispanic Marketplace at Libre Mexico, in a press release. While this statement highlights the positive aspects of Mercado Libre’s presence, it doesn’t address the concerns raised by Cofece regarding competitive barriers.
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