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Jan. 29 (UPI) — Chinese e-commerce platform Temu has taken its dispute with Mercado Libre to federal court after Argentina’s largest online marketplace accused it of unfair competition.
Mercado Libre filed a complaint in August 2025 with Argentina’s Secretariat of Industry and Commerce, alleging Temu violated Commercial Fairness Decree No. 274/2019, which governs truthful advertising and fair competition in the country.
After reviewing the filing, the National Directorate of Policies for the Development of the Domestic Market opened an investigation and ordered Temu to suspend digital advertising and promotions deemed misleading.
In response, Temu turned to federal court Wednesday to try to halt the administrative measure and maintain its operations in Argentina, Argentine daily La Nacion reported.
According to the complaint, the company founded by Argentine entrepreneur Marcos Galperin challenged Temu’s commercial strategy, which Mercado Libre said relies on extreme discounts and promotions that are not met under the conditions advertised, local outlet Ambito reported.
Among the main allegations are discounts ranging from 80% to 100% that apply only if users meet additional requirements, such as minimum purchase amounts, buying other products or completing purchases within the app.
Mercado Libre also accused Temu of what it described as “misleading gamification,” using games and interactive features that promise prizes or free products, but in practice impose increasingly complex and unclear conditions.
The dispute is now under the jurisdiction of the National Chamber of Appeals in Civil and Commercial Federal Matters, which must determine the next steps in the case, Infobae reported.
Temu rejected the allegations and said its business model is transparent and that prices, discounts and conditions are clearly disclosed to users, which the company contended rules out consumer deception.
Mercado Libre said the complaint is not related to Argentina’s opening of imports, a policy it supports. The company noted that it also offers imported goods through its international purchases category and competes in what it described as a dynamic and open market with both local and global players.
The legal battle unfolds amid rapid growth in cross-border e-commerce in Argentina. Data cited in the case show door-to-door purchases through platforms such as Temu and Shein posted increases close to 300% year over year, driven by low prices, direct shipping and intensive social media marketing.
The expansion of the Chinese platforms has revived debate over the regulatory framework for digital commerce and competition between domestic and foreign companies, Perfil reported.
Mercado Libre executives reiterated the need for rules that are “the same for everyone,” as the case becomes a key recent precedent on competition and advertising in Argentina’s e-commerce sector.