Los banks denounced Mercado Libre before the National Commission for the Defense of Competition (CNDC) of course “exclusive abuse of dominant position to the detriment of consumers, businesses and other market actors”.
The presentation was carried out through the MODO virtual walletwhich brings together the main entities, among which are Banco Nación, Banco Galicia, Banco Santander, Banco Macro, Banco BBVA and ICBC, among others; although without including Banco Provincia, the only so-called “large” one that is not a party, since it has its DNI Account.
As they indicated through a statement, released in the last few hours, in the complaint they provided “a large number of compelling evidence and documents that clearly demonstrate abusive and exclusive behaviors carried out by Mercado Libre SRL, Mercado Pago Servicios de Procesamiento SRL and MercadoLibre, Inc.”.
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“Las abusive behaviors of Mercado Libre, detailed in the complaint, generate negative effects for the market disproportionately maximizing their profits at the cost of contracting the value offer for users due to the lack of competition”he explained Santiago Eraso Lomáquizlegal director of MODO.
Beyond this escalation, which has already happened judicial landsthis conflict comes of yore. One of the main reasons behind this tension It is the issue of payments using QR codes.
It is that when a trade uses a QR code provided by Mercado Pago, the system only authorizes card payments through that QR if the plastic is loaded in the Mercado Pago wallet. On the other hand, it rejects payments if the card was associated with other platforms, such as the banks themselves.
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This, in normative terms, It was modified a few days agowhen the Central Bank announced the interoperability of QRs displayed by businesses to charge with credit cards, a measure that hhad been postponed three times precisely due to the refusal of fintechcreated by Marcos Galperin, to open its code.
However, and despite the regulations that establish it, In practice, this would not have happenedwhich triggered the banks’ complaint.
“It is not possible to ignore the fact that the dominant player in the market prevent the application of the BCRA standard with commercial requirements what imposes interoperability of credit card payments in QRs. That is anti-competitive behavior in itself. A serious one“, they remarked from MODO.
Another aspect, they indicated in the writing, has to do with “imposition on users” of using solely and exclusively the services of Mercado Pagoboth the wallet and the account, to pay or collect, with high commissions associated with it, the services” of Free market, “tying” the transaction from one to the other.
“According to reports prepared by independent third parties, Purchases made through Mercado Libre represent 80% of retail e-commerce in Argentina. Therefore, this tied sale allows anticompetitive leverage in multiple network effects, seriously restricting the freedom of choice of businesses and consumers,” they emphasized in the judicial presentation.
The lawyer for the banking entities raised the possibility that the Defense of Competition could identify other irregular practices from “an in-depth analysis of the payments ecosystem and digital walletswhich has become very complex in recent years“.
Likewise, he clarified that the complaint does not question the company’s leadership positionwhich “has been earned through the provision of sexcellent quality services“, sino on how you use it and whether you exclude the competitionharming users, as it argues happens with Mercado Libre.
“On our path, like any company, We encounter multiple technical, commercial and regulatory challenges. However, we were always surprised to see how Mercado Libre has generated very obvious artificial barriers so alone They multiplybecoming increasingly larger and deeper to the detriment of the entire payments ecosystem,” concluded Eraso Lomáquiz.
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The reasons behind the complaint to Mercado Libre
In the document presented to the National Commission for the Defense of Competition, MODO denounced “anti-competitive behavior”, that belong to:
Refusal to incorporate competing digital wallets: According to MODO, Mercado Libre prevents the use of digital wallets that compete with Mercado Pago in its marketplace, denying access to those who request to be payment initiators on the platform. Negative to incorporating competing aggregators: a In turn, it does not allow other aggregators and acceptors competing with Mercado Pago to provide collection services in its marketplace, tying merchant sales to its own payment services. Obligation to open an exclusive account in Mercado Pago: The banking entities also highlighted the obligation for buyers and sellers of the marketplace to have an account in Mercado Pago Refusal to the interoperability of the QR and payment gatewayThey also reported an impediment to competing Mercado Pago wallets so that users can pay with their QR or payment gateway (e-commerce). Refusal to the interoperability of the Mercado Pago digital wallet: Finally, they stated that the company prevents Mercado Pago users from initiating card payments using competing acquirers and aggregators
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What did the banks ask the CNDC?
In this framework, MODO, and the entities that comprise it, requested that the CNDC issue a precautionary measure and force Mercado Libre to what:
Grant immediate access to your marketplace to competing digital wallets of Mercado Pago, in particular, that positively responds to the request made by Modo to operate as a payment button within the Mercado Libre marketplace Give acquirers, aggregators and acceptors immediate access to your marketplace Mercado Pago competitors Cease the tied sale between the Mercado Libre marketplace and the Mercado Pago digital walletallowing businesses/sellers in the Mercado Libre marketplace to receive their sales charges directly into the bank or payment account of their choice Immediately cease the interoperability denial and make your QRs interoperable for both PCT and card payments, without discriminating or degrading the service for other wallets Make your digital wallet interoperable so that Mercado Pago users can initiate card payments in payment methods offered by acquirers and/or aggregators competing with Mercado Pago