Cofece investigates illegal exclusivities in financial services in Mexico.

The Federal Economic Competition Commission (Cofece) has announced the initiation of an investigation that could have a significant impact on the financial services sector in Mexico. The focus of this inquiry is the possible "illegal exclusivities" in the area of cash deposits and withdrawals that some self-service and convenience stores might be implementing. This practice not only raises serious questions about competition in the market but also directly affects consumers, who may be limited in their payment options. Cofece has explained that this type of exclusivity occurs when a dominant company establishes conditions that force its suppliers or marketers to offer only its products or services. Consequently, this dynamic restricts the participation of competitors in the market, which can lead to an increase in prices and a reduction in the quality of the services offered. In a context where cash remains the most commonly used payment method in the country, the situation becomes even more critical. According to data from Cofece, cash is expected to continue being the primary form of payment for Mexicans at least until 2027. This is particularly relevant, given that a survey by the Bank of Mexico revealed that 19% of the population only has access to cash as a payment method. This percentage highlights the importance of providing multiple options for deposits and withdrawals in commercial establishments, ensuring that those without access to traditional financial services can manage their money effectively. The effects of illegal exclusivities are not limited to reducing options for consumers; they can also have broader repercussions on the country's financial system. The lack of competition in this sector can hinder financial inclusion, a key objective for the economic and social development of many communities in Mexico. Competition in these services not only fosters greater diversity of options for users but also encourages financial institutions to improve their products and services, offering greater transparency and lower costs. Cofece has made it clear that if anticompetitive conduct is determined to exist, the companies involved could face severe economic sanctions, with fines that could reach up to 8% of their annual revenue. Additionally, executives involved in these practices could be disqualified from holding positions in the future, as well as facing personal fines. These measures aim to deter companies from engaging in conduct that harms consumers and the market in general. Cofece's announcement has generated various reactions in the business sector. Some market players have expressed their willingness to cooperate in the investigation, while others have voiced concerns about the implications it could have on their business operations. The uncertainty surrounding this inquiry could create a domino effect in the sector, forcing companies to review their internal policies and procedures to ensure they are not engaging in practices that could be considered anticompetitive. In a country where a considerable percentage of the population depends on cash for their daily transactions, it is essential for the financial system to operate in a fair and competitive manner. Cofece's investigation represents an opportunity to address these concerns and ensure that all citizens have access to fair and equitable services. Transparency and competition are fundamental for a healthy market, and it is crucial that necessary measures are taken to protect consumers. As the investigation progresses, it is likely that more revelations will emerge regarding the dynamics of the cash services market in Mexico. The results of this inquiry will not only influence how self-service and convenience stores operate but will also have a tangible impact on the daily lives of millions of Mexicans who rely on cash as their primary payment method. The situation serves as a powerful reminder of the importance of regulation and oversight in a market that must serve all citizens.