BANKS: ANTITRUST AUTHORITY OPENS INQUIRY INTO POSSIBLE ANTI-COMPETITIVE ARRANGEMENT
PRESS RELEASE
PRESS RELEASE
BANKS: ANTITRUST AUTHORITY OPENS INQUIRY INTO
POSSIBLE ANTI-COMPETITIVE ARRANGEMENT
ABI and COGEBAN under investigation for agreed inter-bank commissions
The Italian Competition Authority, at its meeting on 29 March 2006, set up an inquiry into the actions of ABI and Co.Ge.Ban to determine the existence or otherwise of an arrangement liable to undermine competition in the common market and prejudice trade among Member States as stipulated in Article 81 of the European Treaty.
The investigation, notified today to the parties in the course of the inspections foreseen by the law, will evaluate the interbank accords established by Co.Ge.Ban for the withdrawal of cash using Bancomat cards and the interbank agreements brokered by ABI for the bank transfers known as RID (Rapporti Interbancari Diretti, or Direct Interbank Transfers), such as when a bank automatically pays utility bills, and RiBa (Ricevuta Bancaria Elettronica, or Electronic Bank Receipt). Particular attention will be paid to the collective fixing for all participating banks of the maximum level of interbank commissions. In the Authority’s view, the centralized determination of these figures amounts to a price arrangement for services, rendered at an interbank level, which are heavily used by customers and represent an important cost and revenue component of the system. Their fixing in a coordinated manner is liable to limit the room for autonomous decision-making by the banks in their pricing policies toward customers, leading to a potential reduction in competition in the sector, which in turn may lead to higher prices for consumers.
Both arrangements were authorized by the Bank of Italy up until 31 July 2005 under the Italian regulation allowing for the temporary and exceptional overriding of the prohibition on anti-competitive arrangements. A new application for authorization had been presented to the Bank of Italy. Following the change of responsibilities due to the new law governing financial institutions, the documentation has been passed to the Authority which has decided to open an investigation.
Rome, 04 April 2006