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.

The regulator'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.

($1 = 20.1190 Mexican pesos)