Digital Transformation, Retail and Regulatory Challenges in Mexico

This article explores the impact of the digital transformation in the retail value chain. The integration of digital technology has mined the traditional retail structure, increasing competition by providing consumers with more choices and through the focusing retailers on satisfying consumers’ evolving needs through innovative multichannel strategies. The article also analyzes the impact of digital transformation on global Regulatory and Competition Authorities, and the current debate on antitrust policies on the emergence and growth of digital markets. Finally, the discussion reaches antitrust policies in Mexico, with a debate regarding the question “should the tech companies that participate in digital channels be regulated?” with the Federal Economic Competition Commission engaging in a series of actions aiming to prepare the institution to answer this debate, in an attempt to avoid ex ante obligations that could jeopardize innovation and efficiencies in certain markets. 

By Maria Andrea Latapie Aldana & Natalia Patricia Patiño Espinosa^[1]

I. IMPACT OF THE DIGITAL TRANSFORMATION ON RETAIL

Many retail formats, including online and offline sales channels, have emerged to satisfy the demands of consumers. The retail value chain has been changing, due in large part to the so called “digital transformation” including the emergence of e-commerce and the integration of digital technology into all areas of a business.

The digital transformation has focu