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Mexican Antitrust Authority Nears Decision on Walmart Probe

 |  October 1, 2024

The Mexican Federal Economic Competition Commission (COFECE) is expected to announce its ruling on an investigation into Walmart de Mexico, the country’s largest retailer, in the coming days, according to Yahoo News. The investigation revolves around allegations that the company, also known as Walmex, may have abused its market dominance to impose unfair terms on its suppliers and distributors.

The inquiry began after accusations that Walmex was dictating prices and contract terms to its partners, a practice that could constitute “relative monopolistic practices.” This type of behavior, considered an abuse of dominant market power, can result in steep penalties. As per Yahoo News, COFECE’s lead investigator, Jose Manuel Haro, stated last October that the potential fines for such practices could reach up to 8% of a company’s annual revenue.

Walmex has consistently denied any wrongdoing, maintaining that its business practices are fully compliant with the law. In a statement, the company expressed confidence that its actions were taken in the interest of providing competitive prices and ensuring a reliable supply of products to consumers.

Related: The Cost of Making COFECE Disappear

Despite this assertion, news of the ongoing investigation has weighed heavily on Walmex’s stock. Per Yahoo News, shares in the company fell by more than 5% on Monday, marking their lowest point in over 30 months, as investors reacted to the uncertainty surrounding the outcome of the regulatory probe.

The pending decision from COFECE could have significant implications not only for Walmex, but also for Mexico’s broader retail market. If the company is found to have violated competition laws, it could face substantial financial penalties and be required to alter its business practices.

As the retail giant awaits the regulator’s decision, market analysts and industry watchers will be closely monitoring the developments. The case has underscored the growing scrutiny of large corporations in Mexico and the importance of maintaining fair competition in the market.

Source: Yahoo News

Uber and Lyft Face FTC Probe Over Alleged Collusion in NYC Pay Deal Uber and Lyft Face FTC Probe Over Collusion in NYC Pay Deal

Uber and Lyft Face FTC Probe Over Alleged Collusion in NYC Pay Deal

 |  January 30, 2025

The U.S. Federal Trade Commission (FTC) has launched an investigation into whether Uber Technologies Inc. and Lyft Inc. illegally coordinated to limit driver pay in New York City, according to Bloomberg. The inquiry comes in response to an agreement the companies made with city officials in July 2024 regarding driver compensation.

FTC Issues Information Demands

Per Bloomberg, the FTC sent civil investigative demands—comparable to subpoenas—to both Uber and Lyft in the closing days of the Biden administration. These demands require the companies to submit information within 30 days about the specifics of their agreement with New York City officials on driver pay.

Uber spokesperson Josh Gold confirmed that the company received the demand from the FTC on January 21. The request was signed by former FTC Chair Lina Khan before she stepped down at the end of the Biden administration. Gold stated in an email that Uber believes its actions complied with New York City regulations and that the company would cooperate with FTC staff. Similarly, Lyft spokesperson CJ Macklin acknowledged receipt of the FTC’s request, emphasizing that the company takes antitrust laws seriously and intends to work with the agency on the matter.

Details of the Agreement and Potential Concerns

According to Bloomberg, the agreement between Uber, Lyft, and New York City officials aimed to address ride-share lockouts that had led to lower driver earnings. However, Uber’s spokesperson denied any direct deal with Lyft, asserting that the company did not conspire to restrict driver pay. Despite this, a press release from the New York City mayor’s office at the time described the situation as an “agreement” with both ride-share companies.

Related: Supreme Court Rejects Uber and Lyft’s Appeal in California Gig Worker Suits

The FTC’s concern, per Bloomberg, is whether the agreement allowed Uber and Lyft—normally direct competitors—to coordinate on driver hiring and wages, potentially violating antitrust laws. While New York City officials are not under investigation, the FTC is examining the extent of their involvement in shaping the deal and the legal framework under which it was established. The agency’s staff memo noted that the city’s role could provide the companies with some legal defense, but further investigation is required.

Next Steps in the Investigation

The future of the probe now rests with FTC Chair Andrew Ferguson, who was appointed by former President Donald Trump. According to Bloomberg, Ferguson has the authority to continue the investigation, slow its progress, or halt it entirely.

As part of the inquiry, the FTC is seeking communications between Uber and Lyft, as well as interactions with New York City officials, including the mayor’s office and the Taxi and Limousine Commission. The agency is also requesting a copy of the agreement itself, according to documents reviewed by Bloomberg.

Source: Bloomberg