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MercadoLibre ( MELI ) files complaint against MODO for cartel-like

behaviour

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MODO backed by 36 banks, including Banco Nacion,

Santander,

BBVA, HSBC ( HSBC )

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MODO accused Mercado Pago of abusive practices in May

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BUENOS AIRES, Aug 26 (Reuters) - Latin American

e-commerce giant MercadoLibre ( MELI ) said on Monday it had

filed a complaint with Argentine regulators against digital

wallet MODO backed by local banks, alleging cartel-like

behaviour and concentration of the market.

MercadoLibre's ( MELI ) fintech arm, Mercado Pago, offers its own

widely-used digital wallet, with an application to send and

receive mobile payments. Tension has been brewing between the

fintech platform and local banks over the last year.

Mercado Pago's payment QR codes have become ubiquitous in

Argentine stores in recent years, and have helped propel

MercadoLibre ( MELI ) to become Latin America's largest company by market

capitalization, now worth more than $100 billion.

MercadoLibre ( MELI ) accused MODO, a digital wallet backed by a

group of 36 banks, of operating a monopoly and of committing

acts which harmed the fintech industry and its users.

Banks such as Argentina's Banco Nacion, as well as local

units of banking giants Santander, BBVA and HSBC ( HSBC ), participate in

MODO. MODO itself accused Mercado Pago in May this year of using

abusive practices to dominate the market.

MODO did not immediately respond to a request for comment.

"The complaint against the major banks is for prohibited

concentration, cartelization and coordinated practices intended

to harm the fintech industry and its users," MercadoLibre ( MELI ) said

in a statement.

"The 36 banks that are part of the MODO wallet form a cartel

to avoid competing with each other with their own digital

wallets."

MercadoLibre ( MELI ), founded by Argentine billionaire Marcos

Galperin, said that its complaint to the regulator "seeks to

guarantee a competitive framework for the development of better

financial tools."

Earlier this year, MODO filed its own complaint against

MercadoLibre ( MELI ), alleging its "abusive practices" had allowed

Mercado Pago to scoop up 80% of Argentina's electronic retail

payments.