The Battle for Fair Competition in Digital Commerce: MODO vs Mercado Pago in Argentina

Cross-complaints are on the rise as banks and Mercado Pago struggle to agree on integrating credit cards into the interoperable QR code promoted by BCRA. MODO, a wallet representing 36 entities, has recently reiterated its complaint against Mercado Libre for “abuse of dominant position.” The complaint highlights evidence of “abusive and exclusive behaviors” committed by Mercado Libre.

The National Commission for the Defense of Competition (CNDC) is now tasked with summoning Mercado Libre to address the case, which is being handled under strict confidentiality. Additionally, there is a pending complaint made by three former presidents of the organization against MODO for “cartelization.” The complaint against Mercado Libre alleges that the company’s behavior negatively impacts the market and limits competition.

MODO’s move to target not only payments but also emphasize vertical integration within Marcos Galperín’s company throughout the digital ecosystem is bold. By tying Mercado Libre transactions to Mercado Pago transactions, MODO accuses the company of anti-competitive behavior that falls under abuses of dominant position. These abuses aim to exclude competitors or increase profits.

The impact of this complaint on the local market remains uncertain, but it is not the first time Mercado Libre has faced competition issues with regulators in other markets such as Mexico. As both MODO and Mercado Libre navigate through the regulatory process, they continue to raise concerns about their dominance in various areas of digital commerce.

In conclusion, this ongoing dispute between two major players in digital commerce highlights how regulators are becoming increasingly vigilant in ensuring fair competition in online markets. As such, businesses should be aware of these regulations and take steps to avoid any potential legal issues down the line.