Digital Wallet MODO Takes on Mercado Libre in Battle for Interoperable QR Codes: Complaints Accuse Company of Anti-Competitive Behavior.

As the battle between banks and Mercado Pago continues to drag on over the integration of credit cards into BCRA’s interoperable QR code, cross-complaints are piling up before the National Commission for the Defense of Competition (CNDC). MODO, a digital wallet representing 36 entities, has recently reiterated its complaint against Mercado Libre for “abuse of dominant position” before the organization.

In their complaint, MODO provided evidence of “abusive and exclusive behaviors” by Mercado Libre. The CNDC has now taken up the case and is tasked with summoning Mercado Libre to move forward with it. The case is being handled under strict confidentiality.

There is also a pending complaint made by three former presidents of the organization against MODO for “cartelization.” This complaint highlights Mercado Libre’s behavior that harms the market and limits competition.

The move by MODO is bold as it not only targets the payments business but also emphasizes the vertical integration within Marcos Galperín’s company throughout the digital ecosystem. By linking Mercado Libre transactions to Mercado Pago transactions, the company is accused of anti-competitive behavior. This type of behavior falls under abuses of dominant position, which 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 that Mercado Libre has faced competition issues with regulators in other markets such as Mexico where similar complaints have been raised against them for abusing their dominant position. The case continues to unfold as both MODO and Mercado Libre navigate through this regulatory process.