BANKS: ANTITRUST AUTHORITY LAUNCHES PARALLEL INVESTIGATIONS INTO POSSIBLE AGREEMENTS RESTRICTING COMPETITION INVOLVING ABI AND THE CONSORZIO BANCOMAT
PRESS RELEASE
PRESS RELEASE
BANKS: ANTITRUST AUTHORITY LAUNCHES PARALLEL INVESTIGATIONS INTO POSSIBLE AGREEMENTS RESTRICTING COMPETITION INVOLVING ABI AND THE CONSORZIO BANCOMAT. CONTESTATION OF AGREEMENTS ON PAGOBANCOMAT, BANCOMAT, RID AND RIBA COMMISSIONS.
The proceedings shall determine whether the interbank commissions established by ABI and the Consorzio Bancomat derive from basic principles of economic efficiency or, alternatively, they restrict competition among banks, with negative effects on end users.
On November 25th, 2009, the Autorità Garante della Concorrenza e del Mercato decided to launch two distinct investigations into ABI and theConsorzio Bancomat in order to determine whether the interbank commissions established for Pagobancomat, Bancomat, RID and RiBa services derive from basic principles of economic efficiency or, alternatively, they restrict competition among banks. Interbank commissions represent intermediate costs, and setting them at fixed levels creates minimum thresholds under which banking companies no longer engage in competition. This mechanism resulted from interbank agreements that may be qualified as collusive agreements, leading to less favorable economic terms and conditions for end users.
Pagobancomat commissions
For users of Pagobancomat, the maximum interbank commission was set by the Consorzio Bancomat, which includes ABI (the Italian Banking Association), the banks themselves, financial intermediaries and all other subjects that operate payment services under the authorization of national and European law. A commission of 0.13 euro per operation plus 0.1579% of the transaction value was established last May for application from July 1st, 2009, to June 30th, 2011. In terms of market share, the PagoBANCOMAT circuit holds at least 75% of the market in terms of cards and nearly 88% in terms of total POS operations.
Bancomat, RID and RiBa Commissions
The second investigation concerns the commissions established by ABI for the credit payment services of RiBa (Ricevuta Bancaria Elettronica – Electronic Cash Order) and RID (Rapporti Interbancari Diretti – Direct Debit) and the commission established by the Consorzio Bancomat for cash withdrawals with Bancomat cards at affiliated automated teller machines (ATM).
These three interbank commissions had already been subject to previous proceedings, during which ABI and the Consorzio Bancomat had proposed the introduction of cuts that could fluctuate between 11% and 64% maximum and the complete elimination of other commissions - commitments that were approved and made obligatory by the Antitrust Authority. At that time, however, the Antitrust Authority also reserved the right to reconfirm the validity of these commitments over time or in response to market developments and other changes in European context. In fact, the interbank commissions investigated may not only be unjustified by the principle of economic efficiency, but also arise competition-related problems in the context of current efforts to synchronize the European payment services (SEPA). The SEPA direct debit service, for instance, is equivalent to the RID service, yet no interbank commissions are deemed necessary for efficient SEPA functioning.
The second investigation shall focus on the following specific interbank commissions:
Bancomat: 0.58 euro;
RiBa payment services: 0.57 euro;
RiBa notice of outstanding payments: 0.38 euro;
RID payment services: 0.25 euro;
RID Rapid payment services: 0.35 euro
Rome - November 27th, 2009