The reasons why Shopee and Mercado Livre are being accused of unfair competition

A group of Brazilian businessmen sent a letter to the Brazilian government requesting that new regulations imposed on e-commerce companies such as AliExpress, Shein, Shopee and Mercado Livre, which import products Chinese.

One of the ideas is to approve tax rules so that Brazilian consumers pay taxes and fees at the time of purchase, and not at the Federal Revenue Service. If you want to know more details about accusations of unfair practices by Mercado Livre, Shopee, among other platforms, just continue reading this article.

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Accusation of unfair practices by Shopee and Mercado Livre

Information on the accusation of unfair practices was released by the government last month. According to the document, the demand from the group of businessmen was delivered to the President of the Republic Jair Bolsonaro (PL), senators and the Minister of Economy, Paulo Guedes, in addition to the Attorney General's Office (PGR).

The leader of the initiative claims that Chinese import stores constitute unequal competition and, therefore, seek equal treatment. The entities and companies that brought the demand to the government claim that virtual stores can “dribble” money to the Federal Reserve through tax engineering.

Under-invoicing financial notes and product labeling in Sweden is one of the practices that markets would employ. Only 2% of the approximately 500,000 packages that arrive at Brazilian customs are analyzed, according to Brazilian businessmen.

Defense of Shopee and Mercado Livre

Shopee claims to operate in Brazil in accordance with all local laws and is responsible for the compliance of platform providers. Mercado Livre, which was also accused of not being responsible for the sale of goods and allowing natural persons (PF) to carry out sales without income tax declaration, defended itself.

In this regard, they stated that the platform requires sellers to obtain a CNPJ after completing a certain number of daily sales.

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