MEXICO CITY, Dec 16 (Reuters) - Mexico's antitrust

watchdog Cofece said it could fine Walmart's local unit Walmex

up to 8% of its income if it does not comply with a resolution

prohibiting the retailer from engaging in certain conduct deemed

illegal, the regulator said on Monday.

Cofece's statement comes after Walmex reported

on Friday that Cofece ordered the company to pay a fine of over

93 million pesos ($4.62 million) for engaging in a monopolistic

practice involving its suppliers.

"For 13 years, Walmart used its market power to impose

abusive conditions on its suppliers, obtaining illegal

advantages over its competitors," the watchdog said in the

statement, outlining several prohibitions it levied on Walmex,

Mexico's largest private retailer.

Walmex did not immediately respond to a request for

comment on Cofece's statement, but said on Dec. 13 that it

believes the regulator's analysis is incorrect and that it will

appeal its ruling.

Cofece on Monday said it had prohibited Walmex from

taking reprisals against suppliers in the form of sanctions or

terminated contracts in retaliation for the supplier's

commercial relations with other self-serve stores.

The antitrust body said it also prohibited Walmex from

demanding or imposing prices on its suppliers and from requiring

its suppliers to provide information on the prices or conditions

they offer to other businesses.

"Cofece will verify compliance with the measures for ten

years and may fine Walmart up to 8% of its income if it does not

comply with this resolution," the regulator said.

($1 = 20.1190 Mexican pesos)