What will happen to Amazon and Mercado Libre in Mexico? This is what Cofece says about its streaming packages. news from mexico

Neutral , Mexico , coffee

Coface issues preliminary decision and bans Mercado Libre and Amazon streaming packages with Disney+ and HBO Max.

Is Coface going up against the Mercado Libre and Amazon packages offered by Disney Plus and HBO Max, respectively?

Mexico City.- Recently, Federal Economic Competition Commission (Cofes) Mexico issues a preliminary opinion Official Gazette of the Federation (DOF)in which he initially determined that “There are no conditions of effective competition in the retail electronic commerce marketplace in Mexico, which affects both sellers and buyers.”,

According to the Commission, electronic commerce such as Amazon and Mercado Librefocus 85 out of every 100 sales in the market of buying and selling on the Internet, so Urged both companies to file action and end their discount packages In streaming and live video service since it is a “Artificial Strategy” Which attracts customers.

this decision There have been different reactions from consumers And the question is what will happen streaming package Hired in these two e-commerce stores.

What will happen to the Amazon and Mercado Libre packages?

for now, Determining the coface is preliminary Therefore, there will be no immediate action against streaming packages.

However, if done in the next six months, Amazon and Mercado Libre will have to separate these services And all those not related to market use.

Platforms are free to offer streaming programs and any other services, but these cannot be offered as part of the same package as marketplace-related services.

i.e, Services like Prime Video, Disney+ and HBO Max will be offered independently and charged for Without adding themselves to any type of package promoted by any marketplace, this way they will no longer be able to combine their packages.

What should Amazon and Mercado Libre do in the face of Coface’s measures?

If this is given, Amazon and Mercado Libre will have to adjust to Coface measures And provides solutions to customers who have contracted a loyalty package.

Currently, both Amazon and Mercado Libre They are analyzing the preliminary decision Of the Commission.

The said opinion, which is not a final decision, evaluates the existence of certain obstacles to competition in the examined market and proposes certain measures to overcome them. Mercado Libre is analyzing this preliminary decision and will follow the applicable regulatory process and framework, including cooperating with the relevant authorities, as it has always done,” the firm said.

On its part, Amazon assured that its way of operating has given “Better opportunities for sellers across the country” And they will also look for a solution to the Coffs decision.

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