Argentine e-commerce firm Mercado Libre has initiated a legal complaint against its Chinese rival, Temu. The filing, occurring in the context of the Asian platform’s expansion in the country as a result of import liberalization, represents the concluding phase of a commercial dispute that has persisted for several months. At this juncture, the decision rests with Argentina’s Supreme Court. In August 2025, Mercado Libre lodged a complaint against Temu for alleged false advertising with the Undersecretariat of Consumer Protection and Fair Trade within the Trade Secretariat. The Argentine platform contended that the Chinese company was disseminating misleading information to consumers regarding promotions and product pricing. The Secretariat has upheld the complaint and initiated an investigation. A precautionary measure was also ordered against the Chinese company to suspend the reported practices.
Temu has initiated legal proceedings against Mercado Libre. The assertion was made that the Argentine company lodged a “false complaint,” with the objective of prompting the Trade Secretariat to halt its measures. The situation intensified, culminating in the lawsuit reaching the Supreme Court earlier this week. A source informed that Mercado Libre has accused Temu of participating in “systematic misleading advertising” — promoting offers or “extreme discounts” between 80% and 100% that are contingent upon the user fulfilling additional undisclosed conditions. The Argentine company further alleged that its Chinese counterpart engaged in “misleading gamification” — employing playful dynamics that offer prizes or gifts, yet induce psychological pressure to persist in interaction or purchasing. The complaint arrives at a time when Chinese platforms such as Temu and Shein are experiencing significant success. Consulting firm Abeceb reports that Argentine purchases on the two platforms totaled US$789 million through November, reflecting a year-over-year growth of 291.8%.
The development represents a direct consequence of the textile industry’s decline, as it is among the sectors most adversely affected by Milei’s import liberalization policies. The reduction or elimination of tariffs encompassed in the president’s policies has facilitated the expansion of Chinese platforms such as Temu and Shein. The Argentine Chamber of Garment Manufacturers projects that the textile sector is losing 1,500 jobs weekly. Purchases via international e-commerce platforms experienced a remarkable increase of 390% from July 2023 to July 2024. In November, Mercado Libre’s founder and former CEO, Marcos Galperín, expressed that he was “not worried” about the growth of Chinese e-commerce companies. Galperín maintains a close relationship with Milei and has consistently expressed support for his policies. “We will continue to compete with them as we have done successfully in various other countries across the continent,” he stated on X at that time.
Argentina is currently in the spotlight due to its industrial policy and the dynamics of international competition. This week, Milei mocked Paolo Rocca, one of the nation’s richest CEOs, by referring to him as Don Chatarrín (Mister Scrap Metal) following his company, Techint, losing a pipeline construction contract to an Indian firm. The reported loss prompted threats of an anti-dumping lawsuit, thereby thrusting protectionism into the forefront of public discourse.