Mexico Fines Liverpool, Chedraui and Mall Operators Over COVID-Era Rent Collusion
Mexico’s antitrust regulator has imposed fines totaling more than 500 million pesos (approximately $28.74 million) on several prominent companies, including retailer Liverpool and supermarket operator Chedraui, for engaging in anti-competitive practices tied to commercial rent negotiations during the COVID-19 pandemic.
According to Reuters, Mexico’s competition authority concluded that the companies coordinated their approach to rent relief discussions with tenants operating in shopping centers at a time when businesses were struggling with pandemic-related disruptions. The regulator said the firms worked together to restrict the amount of rent concessions granted to tenants, undermining fair competition.
Among the companies sanctioned were shopping center operators Grupo Danhos, GICSA, Acosta Verde, Desarrolladora Mexicana de Inmuebles and Grupo Aryba. Per Reuters, the authority determined that the conduct generated estimated economic damages of around 404 million pesos, equivalent to roughly $23.21 million.
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Grupo Danhos pointed to a statement it issued in March, in which the company said it disagreed with the regulator’s conclusions and intended to challenge the ruling in court. The remaining companies named in the decision did not immediately respond to requests seeking comment, according to Reuters.
The market reaction to the announcement was muted. Shares of the affected companies were largely unchanged after the regulator disclosed the sanctions shortly before the close of trading, per Reuters.
The case marks one of the most significant competition enforcement actions in Mexico involving the commercial real estate sector and highlights scrutiny over business conduct during the economic turmoil caused by the pandemic.
Source: Reuters
