Amazon and Mercado Libre dominate the Mexican region

Today, going to a physical store is not as common as it used to be, and this is because the Internet market is getting bigger and bigger, which is why many businesses have to adapt to this time with their online sales. Wrapping service. And although friendly competition is attempted, it is clear that it cannot face the two pioneers of this proposition of buying things online, we are talking about Amazon and Free market.

It is divided by Federal Economic Competition Commission in Mexico, That these two entities amassed 85% of the online platform market, overshadowing other retailers and even red numbers in some cases. And it is mentioned that they use irresistible tactics to make the user stay away from these internet domains and they offer not only during strong time of the year but also on any random day.

The association talked about three specific issues that could act as a barrier that other competitors cannot overcome, the first being no more or less than a monthly subscription, which offers not only free shipping, but also tickets to streaming services such as Amazon PrimeAnd also new Meli+Which only allows $100 MXN users to view Disney Plus and Star Plus Without any additional charges.

Another element is that although there are third-party sellers on the platforms, the best offers come from the markets mentioned above, with their direct dealings with the customer, and they can offer attractive discounts when others do not. Finally, shipping options are always charged by competitors, but Amazon and Mercado Libre They give it free for one month if the customer pays for the membership, and it’s not only offered, but prioritized in terms of waiting time.

In view of this, there are proposals to balance the problem and the first thing is to eliminate the possibility of subscription to streaming services, something that people probably do not want to accept.

Here is what was mentioned in the statement:

Amazon and Mercado Libre have been instructed to separate streaming services from membership and/or loyalty programs, as well as any other services that are not related to the use of the marketplace (such as games, music, among others).

This measure implies that both platforms are free to offer streaming programs as well as any other services, but they cannot be offered as part of the same package of marketplace related services. In this sense, streaming services must be offered and charged for independently and separately from any loyalty program or subscription service.

It is noteworthy that they are taking the matter seriously, as they are giving an ultimatum to both the companies to fix it, otherwise legal issues may arise. So far, neither company has commented on the matter.

Through: Coffee

Editor’s note: I hope they don’t meet the needs of society, otherwise they will take away the great package that is Amazon Prime and Meli+. The truth is, having a streaming service for only 100 pesos is pretty worth it, I hope the competitive market doesn’t get its way.