Mexico Orders Amazon and Mercado Libre to Increase Market Transparency

The companies are required to disclose algorithms and separate streaming services from marketplace memberships to promote competition.

Mexican regulators have ordered Amazon and Mercado Libre to reveal their algorithms and separate TV streaming services from marketplace memberships to ensure fair competition.
The Federal Commission on Economic Competition (COFECE) found that the two companies control 85% of online sales in Mexico, creating a lack of competitive conditions in the online retail market.
COFECE's corrective measures include prohibiting Amazon from using its Prime Video streaming service as an incentive for Prime memberships and requiring transparency in how items are promoted on their platforms.
Amazon has faced similar regulatory challenges in other countries, including a major agreement in Europe to end competition probes and an antitrust lawsuit in the U.S. filed by the Federal Trade Commission and 17 states.
The companies can appeal the order, which, if not complied with, could result in fines up to 8% of a company's revenues in Mexico.