Walmart's Mexican subsidiary plans to appeal $4.6 million in fines over alleged fraud

MEXICO CITY (AP) – Walmart's Mexican subsidiary said Friday it plans to appeal a $4.6 million fine for alleged anti-competitive practices involving suppliers.

Walmart de Mexico said in a statement that it has discussed with suppliers to see if there are any concerns. The agency that issued the fine, known as the Federal Competition Commission, expressed concern about “monopoly practices.”

The commission, Mexico's anti-trafficking agency, is one of the private organizations that will soon be abolished as part of what the government describes as a cost-saving measure.

It apparently levied the fine after at least one rival grocery chain accused Walmart of using its vast buying power to obtain discounts that put other retailers at a disadvantage.

Walmart is the largest retail chain in Mexico. It called the decision “wrong” and said it contained “errors in the application of the law.” The company said it will comply with the agency's decision on Thursday, but will appeal the decision.

Walmart shares rose about 7.5% on the Mexican stock market on Friday.