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MercadoLibre Expands Free Shipping in Brazil to Counter Rising Competition

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MercadoLibre, Latin America’s leading e-commerce platform, announced on Friday a significant expansion of its free shipping policy in Brazil, its largest and most profitable market. The move comes as competition intensifies with rivals like Amazon, Shopee, and emerging players such as Temu gaining traction in the region.

Effective immediately, purchases of 19 reais ($3.40) or more will qualify for free shipping, a sharp reduction from the previous minimum threshold of 79 reais ($14.15). According to Fernando Yunes, head of MercadoLibre’s e-commerce operations in Brazil, “practically the entire site will have free shipping from now on.” This aggressive change aims to boost sales volume across a wider range of products, particularly lower-priced items where competitors have been gaining market share.

Brazil accounts for over 50% of MercadoLibre’s total e-commerce revenue, making the market critical for its overall financial performance. The decision to absorb the financial impact of expanded free shipping underscores the company’s commitment to defending its market leadership. However, Yunes declined to provide specific estimates regarding the cost of the initiative.

The move follows earlier cuts to shipping fees for sellers on the platform, with discounts of up to 40% implemented since late May. Analysts at Itau BBA noted that these changes are strategically targeting product segments where Shopee has been increasingly successful, particularly in lower-priced, high-turnover categories.

While the expanded free shipping is expected to be costly in the short term, MercadoLibre is betting that higher transaction volumes and stronger customer loyalty will offset the immediate financial burden. The company’s long-standing investments in logistics infrastructure, including its proprietary delivery network, provide it with greater flexibility to absorb such aggressive pricing strategies compared to some of its competitors.

MercadoLibre remains Latin America’s most valuable company by market capitalization, but it faces mounting pressure from both established global giants and newer entrants offering highly competitive pricing models. The decision to further lower the free shipping threshold reflects the fierce competition in Brazil’s rapidly growing e-commerce sector, where convenience and price sensitivity remain key drivers of consumer behavior.

Amazon Commits to Tougher Measures Against Fake Reviews After UK Investigation

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Amazon has agreed to implement stronger actions to combat fake reviews on its platform, following a four-year investigation by the UK’s Competition and Markets Authority (CMA). The deal includes new enforcement powers that allow Amazon to sanction British businesses found using deceptive tactics to boost product ratings, as well as measures to detect and remove fraudulent content more efficiently.

The CMA said on Friday that Amazon’s commitments also address concerns about “catalogue abuse” — a practice where sellers attach their products to highly rated but unrelated items in order to mislead shoppers and inflate rankings. In severe cases, businesses violating these rules could face bans from Amazon’s platform altogether. Individual users who post fake reviews may also be prohibited from submitting further reviews.

According to the CMA, approximately 90% of consumers rely on online reviews when making purchasing decisions, making the integrity of reviews crucial for fair competition and consumer trust. Amazon’s new obligations will include robust systems to identify and eliminate manipulated reviews and enforce stricter penalties for offenders.

The regulator began its investigation into Amazon and Google in 2021 over potential breaches of consumer protection law. In January, Google also made similar commitments to improve the reliability of online reviews. CMA chief executive Sarah Cardell praised Amazon’s actions, stating, “These new commitments matter and help set the standard.”

The CMA has recently been granted new enforcement powers allowing it to independently determine if consumer law has been broken. It can now issue fines and compel businesses to improve their practices without needing to go through lengthy court proceedings.

In parallel, the CMA is conducting a broad assessment of online review platforms as part of its ongoing work to ensure compliance with its newly updated reviews guidance issued in April.

UN Report: AI Boom Drives 150% Surge in Tech Giants’ Indirect Emissions

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A new United Nations report revealed on Thursday that indirect carbon emissions from the operations of four major AI-driven tech giants—Amazon, Microsoft, Alphabet, and Meta—rose by an average of 150% between 2020 and 2023. The sharp increase is largely driven by the vast energy demands of data centers powering artificial intelligence systems.

The report, published by the International Telecommunication Union (ITU), the U.N.’s digital technologies agency, analyzed the greenhouse gas emissions of 200 leading digital companies over the three-year period. Indirect emissions include those generated from purchased electricity, heating, cooling, and steam consumed by a company’s operations.

Among the companies surveyed, Amazon posted the largest rise, with operational carbon emissions soaring 182% over the period. Microsoft followed with a 155% increase, while Meta and Alphabet saw rises of 145% and 138%, respectively.

The growing reliance on AI has led to surging energy demands, with electricity consumption from data centers growing four times faster than overall global electricity usage, according to the ITU. The report projects that carbon emissions from top-emitting AI systems could eventually reach 102.6 million tons of carbon dioxide equivalent annually, further straining existing energy infrastructures.

In response, several companies highlighted their ongoing sustainability efforts. Meta referred Reuters to its sustainability report, stating that it is taking steps to reduce emissions, energy use, and water consumption in its data centers. Amazon emphasized its investments in carbon-free energy projects, including both nuclear and renewable sources. Microsoft pointed to its recent progress in improving energy efficiency, including transitioning to chip-level liquid cooling technologies that consume less energy than traditional cooling systems.

However, the ITU noted that while more digital companies are setting ambitious emissions targets, many of these commitments have yet to translate into meaningful reductions in actual emissions. The report underscores the growing challenge of balancing AI’s rapid expansion with environmental sustainability.