Mercado Libre’s recent 10th quarterly report filed with the SEC (U.S. Securities Commission) reiterated that scope. duty free The company receives this funding from the Argentine state to promote the knowledge economy, a program aimed at revitalizing the technology sector.
This document details the results for the third quarter of 2025. Tax incentives ofThe company has grown to more than 50% compared to the same period in 2024. During the first nine months of the year, Mercado Libre Income tax reductions were declared at USD 50 million and social security contributions at USD 17 million, compared to USD 13 million and USD 31 million respectively in the previous year. Total tax benefits over the past five years exceed USD 350 million.
Founded 26 years ago marcos galperinthe country’s richest businessman (net worth US$8.3 billion), according to Forbes, Mercado Libre is now one of Latin America’s most valuable technology companiesIt has a market capitalization exceeding . 106 billion USD. Only from July to September, the company 7.4 billion USD (39% increase compared to 2024), with net income of USD 421 million, marking the 27th consecutive quarter of year-on-year growth of more than 30%.
Despite its success, the company has faced criticism over its use of state subsidies, particularly from trade union sectors such as the Computer Work Observatory (OTI) and the Computing Guild Association (AGC). They argue that the technology development sector accounts for a small portion of the group operating under a single CUIT, and given its size, tax incentives should be forgone.
in parallel, Mercado Libre continues to have disputes with banks grouped into Modo. They accuse the company of anti-competitive practices and abuse of dominant position. The conflict developed just as the government was debating tax reform, sharpening the company’s position in Argentina’s economic framework.
Mercado Libre’s claims against Mr. Shein and Mr. Tem
A few days ago, the president argentina libre marketJuan Martin de la Serna, Chinese platforms Temu and Shein are experiencing accelerated growth with strong commercial penetration in the region.
Delaserna said: “It’s important to have a good regulatory framework that is common to all competing companies. Regulation is very important in both finance and commerce.”
The executive warned that Due to the large-scale entry of low-priced products from China, impacting small businessesaccounting for nearly 90% of Mercado Libre’s sales.
he even warned about this phenomenon “There is a risk of undermining the local production base and putting local jobs at risk.”
Mr. Delaserna said that with the current regulations, “Local jobs will not be created.”
“If you open up the market indiscriminately and Asian companies send products by ship, the reality is that “You are giving jobs to Chinese companies, not Argentines.”, he pointed out.
He explained that the emergence of new competitors is forcing Mercado Libre to become more aggressive in investments and logistics efficiency, but warned that the uncontrolled growth of these platforms is dangerous. “It throws the playing field off balance.”
In this scenario, Mexico, Chile, and Uruguay would take steps to tighten taxes and import controls on low-cost products from China, with the aim of protecting their own retailers. But Argentina has so far taken no action.
A cross between Marcos Galperin and Miguel Angel Pichet
Based on these statements of de la Serna, Galperin himself and deputy Miguel Ángel Pichet passed each other in the X. ”I was the first to talk about the need to impose heavy taxes on the products of the Chinese platforms Shein and Temu. There are many people involved, including Mr. Galperin of Mercado Libre. “Congress must try to regulate this platform economy and take care of domestic industry and Argentine jobs,” he said.
The best mentions of Latin American unicorns were assertive and lowered the tone of alarm. ”No worries. We’re going to compete with them the same way we compete with them, which has been very successful so far.and many other countries on the continent.”I wrote.
As Mercado Libre reported in its most recent balance sheet,Net income for the third quarter was USD 421 million, growth of 5.7%; under Analysts estimate USD 489 million. This is the second consecutive quarter that the company’s profits were lower than expected.
According to Bloomberg, In Brazil, international competitors were gaining ground with Mercado Libre. Therefore, the company lowered the standard price for free shipping, which increased sales volume but put pressure on profit margins.
of Mercado Libre’s continued investment in free shipping; logistics Fulfillment, user experience, and product diversity Significant growth in Brazil, Mexico and Argentina.
in Brazilthe number of items sold increased by 42% year-over-year and gross merchandise value (GMV) at constant currencies increased by 34% due to a lower free shipping threshold. number of Unique buyers increased 29% year over yearThis is the fastest pace since the first quarter of 2021 and the company’s largest quarterly new buyer intake in the country’s history.
Mexico had similar performance, with item sales up 42% year over year and GMV up 34% at constant currency.
Argentina Strong results despite difficult macroeconomic conditions. In constant currencies, items sold increased by 34% and GMV increased by 44%.. center network MercadoLibre fulfillment increased total production capacity 41% year-over-year increase in the same quarterArgentina now offers same-day delivery, and Mexico and Brazil have a higher percentage of express delivery.
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