Mexico’s Antitrust Authority Targets Gruma for Market Control

Mexico’s antitrust authority, COFECE, has ruled that Gruma, one of the largest producers of corn flour and tortillas in the country, has the power to set prices within the industry, raising concerns about the lack of competitive conditions in this crucial market.

According to Yahoo Finance, the decision came following an investigation by COFECE, which concluded that Gruma controls between 50% and 90% of the market. The watchdog highlighted that such a dominant position hinders competition, and called on the company to divest some of its assets and discontinue several of its current business strategies to restore balance in the market.

In a response issued after the ruling, Gruma stated it has fully cooperated with the investigation, reiterating that it operates within the bounds of the law. However, the company also emphasized that the ruling is still in a preliminary phase, making it difficult to predict the final outcome of COFECE’s deliberations.

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The investigation focused on Gruma’s role in the production, distribution and marketing of corn flour and tortillas, as well as related services in the corn market, a sector that is vital for Mexico’s economy and consumers. Per Yahoo Finance, COFECE’s report, published in the official government gazette, noted that this market segment plays a crucial role in determining the price of tortillas, a staple food for millions of Mexican households.

Source: Yahoo Finance