The Competition Authority (AdC) accused a “business group of abuse of dominant position in the payments sector”. Although the company is not identified in the supervisor’s communication, it is the BROTHERSin a process under which raids were carried out in early 2021, reported by the Observer in July of that same year.
It is a “notice of illegality (communication of accusation) against a business group for a linked sale practice, likely to restrict competition and innovation in the payment services sector,” the competition statement indicates. “Access to the services in question, sought by the potential clients of this business group, is necessary for these clients to be able to provide certain payment services to final consumers”, it adds.
After an investigation, the AdC concluded that there are strong indications that access to an important set of services (primary service) was conditional on contracting other different services (secondary service) from the same business group, without the possibility of contracting only access . to the desired set of services,” says the supervisor.
In information available on the website, the AdC indicates that “strong indications were identified that access to the payment systems of the SIBS Group (MB scheme and ATM services) was subject by this entity to the obligation to contract also the processing services of the SIBS Group”. .
“If confirmed, it is likely that the behaviors investigated by the AdC -and that occurred between at least February 2019 and October 2021- will hinder this evolution of the sector, restricting competition and innovation in the markets in question”, says the Authority of Competition.
SIBS was the subject of searches by the Competition Authority, which considers it “almost monopolistic”
As the AdC itself explains, this note of illegality, adopted on July 28, 2022, does not determine the final result of the investigation. At this stage of the process, “the parties are given the opportunity to exercise their rights to a hearing and defense in relation to the crime they are charged with and the sanctions that may be incurred.”
Monopoly? Foreign “Fintech” files a complaint with the Bank of Portugal against SIBS
SIBS has already reacted, telling Lusa that the AdC’s accusation “has no basis”, showing surprise that the communication has been made when there are still deadlines to respond. In fact, she says that the group “will exercise its right to a hearing and defense in relation to the wrongful act that it is accused of, since it considers that the process is unfounded.”
We were surprised to note that the prosecution’s communication was taken at a stage in which the deadlines to respond to requests for information presented by the Competition Authority itself are still running and that interactions were planned to clarify open questions, which, from the perspective of SIBS, it is necessary to deepen”, he adds.
SIBS guarantees to act “in strict compliance” with the regulations that apply to it in the context of the national and European payment market in which it operates, “including those of competition”.
There are several SIBS group companies in question. According to information from the AdC, there is a “reasonable possibility that a sentence will be adopted” in relation to SIBS SGPS, SIBS Forward Payment Solutions, SIBS MB and SIBS Cartão. As for SIBS Pagamentos, SIBS Processos, SIBS International and SIBS Gest “there is no reasonable possibility that a conviction will be handed down, so the case is closed with respect to them.”
(Updated news with SIBS reaction to Lusa)
Source: Observadora
