Amazon denies it is stifling competition after Mexican regulator raises concerns

MEXICO CITY, Feb 14 (Reuters) - Amazon on Wednesday refuted claims it poses a threat to competition in Mexico's e-commerce market, a day after a regulator report alleged the company and rival Mercado Libre could limit new entrants to the country's burgeoning industry.

Mexican antitrust regulator Cofece on Tuesday said the two companies together control more than 85% of transactions and sales in the sector, presenting a "practically insurmountable challenge for the expansion of the smaller players."

Amazon said the company was aware of Cofece's preliminary report and was closely collaborating with the regulator.

"Our pro-competitive practices in Mexico spur competition and innovation across the retail industry, and have produced greater selection, lower prices, and faster delivery speeds for customers and greater opportunities for sellers across the country," Fernanda Ramo, Legal Director of Amazon Mexico, said in an emailed statement.

Mercado Libre also pledged its cooperation with Cofece on Tuesday, stressing that even if Cofece's governing board eventually issues a formal resolution, it would not involve any economic sanctions since no investigation into monopolistic practices has been launched.

U.S. behemoth Amazon entered Mexico in 2013 and launched its marketplace there two years later. Mercado Libre, its South American rival, has been operating in Latin America's second-largest economy since 1999.

(Reporting by Kylie Madry Editing by Drazen Jorgic, Kirsten Donovan)