MercadoLibre Files Complaint Against MODO for Alleged Cartel Behavior

MercadoLibre has lodged a complaint with Argentine regulators against MODO, a digital wallet supported by various local banks, alleging monopoly and cartel-like operations. The fintech giant's Mercado Pago has been at odds with MODO over market practices, with both entities trading accusations of unfair competition.

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.)