MercadoLibre Files Complaint Against MODO for Alleged Cartel Behavior

Latin American e-commerce titan MercadoLibre has filed a formal complaint with Argentine regulators, accusing the digital wallet MODO of cartel-like behavior and market concentration.

MercadoLibre’s fintech division, Mercado Pago, which offers a widely-used digital wallet, has claimed that MODO, backed by 36 local banks, is running a monopoly and harming the fintech sector and its users. Major banks like Banco Nacion, Santander, BBVA, and HSBC are participants in MODO.

MODO previously accused Mercado Pago of using abusive practices to capture an 80% share of Argentina’s electronic retail payments. Both companies have traded accusations without resolving the mounting tension in the fintech market.

(With inputs from agencies.)