Amazon (NASDAQ:AMZN) has publicly refuted claims of impeding competition in Mexico following allegations made by the country’s Federal Economic Competition Commission, also known as COFECE.

On Tuesday, COFECE released a report identifying what it described as a “practically insurmountable challenge for the expansion of the smaller players” in the Mexican ecommerce industry. The report accused Amazon (AMZN) and MercadoLibre (MELI) of creating barriers to entry for competing marketplaces, alleging that the two companies collectively control 85% of the market.

The report specifically highlighted three factors that, according to COFECE, hinder smaller merchants from effectively competing with Amazon and MercadoLibre. These include the offering of additional services such as streaming in their loyalty programs, lack of transparency in managing offers that undermines efficient market functionality, and providing preferential treatment to products from sellers that use fulfillment services from Amazon and MercadoLibre.

While COFECE has not imposed any sanctions on the companies, it has recommended corrective measures aimed at increasing transparency and fostering healthy competition within the industry.

Responding to these allegations, Amazon’s legal director in Mexico emphasized the company’s commitment to maintaining “pro-competitive practices in Mexico that spur healthy competition” for both buyers and sellers across the country.

In a separate statement, MercadoLibre (MELI) expressed its willingness to cooperate with the regulators in addressing the concerns raised.

Notably, according to web rankings, MercadoLibre (MELI) holds the top position as the largest ecommerce site in Mexico, followed by Amazon.com.mx, and Walmart.com.mx (WMT).