🔍 Overview of the Investigation 🕵️
The Federal Economic Competition Commission (COFECE) in Mexico is currently examining Amazon and Mercado Libre. They're focusing on how these tech giants integrate streaming services like Prime Video with their loyalty programs. This method is thought to possibly limit market competition.
📈 Consumer Impact and Market Trends 📉
Experts suggest that separating streaming services from loyalty programs might increase consumer costs, as evidenced by a 7.1% increase in monthly spending on these platforms last year. The trend seems likely to continue with forthcoming industry changes.
🚫 Allegations and Concerns 🚷
According to sources, COFECE argues that Amazon and Mercado Libre's strategies create "artificial barriers" to competition. By bundling streaming access with loyalty programs, these companies may be unfairly dominating the market.
📦 Potential Outcomes and Effects 📦
Should COFECE decide against the current business models of Amazon and Mercado Libre, customers might have to pay separately for multiple streaming services. This shift could dismantle the cost benefits currently enjoyed under the loyalty programs.
Will COFECE's decision raise your streaming costs?
