The investigation
Following a supervisory and monitoring procedure into the financial sector, in particular an inquiry directed at a group of financial sector companies based on digital technologies (fintech), the AdC initiated ex-officio proceedings on 17 November 2020 to investigate a possible infringement of Article 11 of Law no. 19/2012, of 8 May (Portuguese Competition Act) and Article 102 of the Treaty on the Functioning of the European Union (TFEU).
At issue in this case are practices that amount to an abuse of a dominant position in the form of tying. The AdC’s investigation revealed that the access to certain important payment schemes (MB scheme, MB WAY and MULTIBANCO network) was made conditional on the purchase of other set of services (processing services) from the same corporate group, without the possibility of contracting access only to the payment schemes.
Payment card schemes and processing services
The access to payment schemes is necessary for an issuer (e.g., a bank) to provide cards allowing payments under these brands to its clients (consumers). Acquirers also need to have access to payment schemes to enable merchants to accept these payments in physical stores.
In turn, card payments need to be processed. Processing services consist of executing the necessary actions for the processing of payment instructions between the acquirer and the issuer, ensuring authorisation, clearing and settlement of transactions.
The statement of objections
In order to establish the facts and confirm the evidence gathered in the abovementioned supervisory procedure, several inquiry measures were carried out, including requests for information to the entities involved and third parties, as well as dawn raids with a view to seize copies of documents, electronic correspondence and other information.
On 28 July 2022, the AdC adopted the statement of objections in the context of this case, subsequently giving the entities involved the opportunity to exercise their right to be heard and the rights of defence regarding the infringement of which they are accused and the sanctions in which they can incur.
The infringement decision
On 18 March 2024, the AdC adopted an infringement decision against this corporate group for an abuse of a dominant position in the form of tying, capable of restricting competition and innovation in the payment services sector, pursuant to Article 11 of the Portuguese Competition Act and Article 102 TFEU.
The investigation of the AdC revealed that, between at least February 2019 and at least October 2021, the entities involved conditioned the access to the group’s payment schemes on the obligation to also contract their processing services.
The AdC’s infringement decision may be appealed.