Cofece investigates illegal exclusivities in cash services in Mexico.

The Federal Economic Competition Commission (Cofece) has initiated an investigation that could have significant repercussions in the cash deposit and withdrawal services sector in Mexico. This action focuses on the possible existence of "illegal exclusivities" imposed by certain self-service and convenience stores, which may be limiting competition in a key market for a broad spectrum of the Mexican population. Cofece has explained that when a dominant company establishes these exclusivities, a scenario is created in which suppliers or marketers are forced to offer only that company's products or services. This practice not only reduces the options available to consumers but also allows the company in question to maintain excessive control over prices, trapping users in a cycle of dependency. This situation is particularly serious in a country where access to cash remains essential for many people. According to data provided by Cofece itself, cash remains the most widely used payment method in Mexico, a trend expected to continue at least until 2027. This reality underscores the urgency of ensuring that citizens have access to a variety of options for conducting their transactions, especially those who do not have access to formal financial services. In this context, Cofece's investigation becomes crucial to guarantee a competitive environment that benefits consumers. A recent survey by the Bank of Mexico revealed that approximately 19% of the Mexican population relies exclusively on cash for their transactions. This figure highlights the need for multiple alternatives in the market that allow all citizens to make deposits and withdrawals without unnecessary complications. Financial inclusion is a vital aspect of the country’s economic development, and any obstacle that limits access to basic services can have serious consequences. Cofece has warned that if it is determined that the companies involved have engaged in anti-competitive conduct, they could face severe penalties, including fines of up to 8% of their annual revenues. Additionally, the responsible executives could be disqualified from holding positions in the business sector for a period of up to five years. These measures reflect the seriousness with which the agency approaches such investigations, emphasizing its commitment to promoting competition in the market. The impact of this investigation could extend beyond fines and sanctions. In a context where competition is scarce, companies tend to offer lower quality products and services at higher prices. Therefore, promoting competition in this sector not only benefits businesses but also results in significant improvements for consumers, who can access better commercial conditions and greater transparency. It is essential to mention that financial inclusion is not just about access to services but also about fostering a culture of transparency and trust in the financial system. When consumers have options, they are encouraged to compare, research, and choose what truly suits them. This, in turn, pushes institutions to improve their offerings and be more transparent in their operations. Cofece's attention to this matter highlights the importance of the role institutions play in fostering a fair and competitive market. The ability of consumers to choose among different service providers is an essential pillar for any healthy economy. The lack of alternatives can limit not only access to basic services but also inhibit innovation and economic growth. In conclusion, Cofece's investigation into possible illegal exclusivities in cash handling is an important step toward promoting competition and financial inclusion in Mexico. As the economic landscape continues to evolve, it is imperative to ensure an environment where all consumers have access to equitable and fair options, thereby fostering a more robust and sustainable economic development for the country.