The dispute between Mercado Libre and Temu It has become one of the most high-profile e-commerce disputes in the region. What began as an administrative complaint about alleged deceptive marketing practices has evolved into a complex case involving various courts and has ended in the Supreme Court of Justice of the Nation in Argentina.
Underlying this confrontation is a profound change in the market: boom in international door-to-door shopping and the emergence of low-cost Chinese platforms like Temu and Shein, which are putting pressure on traditional players in the sector and reopening the debate on how to guarantee a effective consumer protection.
Mercado Libre's complaint: unfair competition and misleading advertising
According to the documentation presented to the Argentine authorities, Mercado Libre accuses Temu of developing a a business strategy based on extreme discounts and misleading promotional messages to users. The complaint was formalized in 2025 before the Ministry of Industry and Commerce, under the protection of Commercial Loyalty Decree 274/2019, which regulates transparency in the supply of goods and services.
According to sources close to the company founded by Marcos Galperin, the core of the complaint is Discount offers between 80% and 100%, and even supposedly "free" products In practice, these conditions would only materialize if the consumer meets a series of additional requirements. These conditions—such as minimum purchase amounts, the obligation to add more items, or to perform extra actions within the app—would not be clearly explained from the beginning of the purchase process.
The Latin American platform also focuses on what it describes as “deceptive gamification”Temu would use game dynamics, raffles, and prize wheels that promise very high-value gifts or coupons, but which, according to the accusation, conceal increasing, often invisible demands that can raise the final cost of the order, including shipping costs which would only appear at the end.
Among the examples mentioned is the appearance, upon opening the application, of a high-value coupon that appears to be directly applicablebut which actually requires purchasing several products in order to use it. Advertisements for “Discounts of up to 940%” and “Free shipping on all orders”, considered by Mercado Libre as promises that generate unrealistic expectations in consumers.
Intervention of the Ministry of Commerce and initial measures
After analyzing the proposals, the Commerce secretary —through the National Directorate of Policies for the Development of the Domestic Market— processed the presentation of Mercado Libre and opened a formal investigation against Temu for unfair competitionAlong the same lines, a preventative measure was issued to immediately limit those campaigns considered problematic.
The injunction ordered Temu suspend all digital advertising and promotions classified as misleadingThis applied to both its own channels (website, app, and social media) and third-party spaces where its ads were displayed. It was an attempt to contain the impact of these practices while the Asian company's conduct was thoroughly analyzed.
Sources close to Mercado Libre insist that the action is not a response to a rejection of trade liberalization, but rather to strict compliance with regulations on fair trade and advertisingIn fact, they point out that the Latin American marketplace itself exploits a category of international shopping where imported products are also offered, which in his opinion demonstrates that the focus is on the way the offers are communicated and not on the origin of the merchandise.
Meanwhile, the Ministry of Industry and Commerce confirmed the existence of two cases with cross-complaints between the platforms, which shows that the conflict has ceased to be an isolated exchange and has become a structural dispute over the rules of the game in e-commerce.
Temu's counteroffensive and the judicial labyrinth
Far from simply complying with the restrictions, Temu responded with a own legal strategyThe Chinese company, which operates in Argentina through the business name Elementary Innovation Pte. Ltd., went to the Federal Court to request an “urgent” precautionary measure with the aim of to halt the suspension of their campaigns and protect their operating model while the substance of the matter was being resolved.
In its filings, the Asian firm argued that Mercado Libre's complaint lacks sufficient evidence and relies on isolated cases or cases taken out of contextFurthermore, he pointed out that his competitor's move would not only be a defense of transparency but also a way of artificially raise barriers to entry and hinder the consolidation of a new player in the Argentine market, where Mercado Libre holds a dominant position.
The case's journey, however, soon became complicated. A conflict of jurisdiction between the Civil and Commercial Courts and the Federal Administrative Litigation CourtSince none of the courts considered themselves competent to hear the case, this situation created a procedural limbo that blocked the resolution of the precautionary measures and, in practice, prolonged the uncertainty for both parties.
Given the lack of agreement between the jurisdictions and the economic relevance of the case, the file was ultimately elevated to the Supreme Court of Justice of the NationThe Supreme Court must now decide which chamber will be in charge of continuing the proceedings, a key step in determining whether the restrictions imposed on Temu are maintained, modified, or lifted.
Mercado Libre has acknowledged being aware of the escalation of the case but, for now, has chosen not to make any substantive public statements While the competition is being resolved, Temu, for its part, has avoided commenting in detail, beyond the positions expressed in its legal filings.
A market in full expansion: the courier boom and Chinese platforms
This clash of giants cannot be understood without context: in recent years there has been a explosive growth of cross-border purchases made by Argentine consumers on Asian platforms, driven by the easing of imports and the rise of the door-to-door model.
Reports from consulting firms such as ABECEB indicate that purchases made through Temu and Shein they reached some $789 million through NovemberThis represents a year-on-year increase of over 290%. Overall, courier operations—direct deliveries to the buyer's home—have become one of the fastest-growing import categories, supported by an appreciated exchange rate, the recovery of domestic demand, and the availability of low-cost products abroad.
This surge not only alters competition between digital platforms, but also raises questions about the impact on local industry and employmentMercado Libre has warned on several occasions that the massive influx of cheap goods can weaken the national production fabric and hit the economy hard. SMEs, which make up a large part of the vendors operating within its ecosystem.
The CEO of Mercado Libre in Argentina, Juan Martín de la Serna, has insisted in various forums on the need to have homogeneous regulations and equivalent requirements This applies to all players, including foreign ones. Their message suggests that if an Asian platform ships goods directly by sea or air, the jobs associated with production and logistics are generated outside the country, while local companies are forced to cope with increasing competitive pressure.
In this context, the dispute between Mercado Libre and Temu has become a test case for regulators and operators in the sector throughout the region. The final outcome will be significant. digital advertising, promotions and gamification It could set the standard by which future campaigns and offers from platforms that operate from outside the territory but sell massively to local consumers will be evaluated.
This whole scenario reflects how Mercado Libre's complaint against Temu for unfair competition and misleading advertising It goes far beyond a specific clash between two companies: it raises the need to update regulatory frameworks, clarify who should control these practices, and find a balance between open trade, consumer protection, and a level playing field in an e-commerce sector that has globalized at great speed.
