In a document released by the government agency and obtained by reporters, Mexico’s antitrust watchdog COFECE concluded that 21 banks and financial organizations operating in the nation are probably in charge of setting costs associated with deferred credit card payments.
The Mexican subsidiaries of HSBC, Santander, and Scotiabank are listed in the 649-page document detailing the findings and naming the organizations and people allegedly implicated.
According to the paper, there is enough evidence to assume that the parties may have participated in anti-competitive behavior based on preliminary findings.
When COFECE started the investigation in 2022, it stated that it was investigating possible monopolistic practices, including as price-fixing and market manipulation in the deferred credit card payment sector, which allows the cost of a transaction to be spread out over a number of months.
In addition to banning certain merchants from the market, the antitrust authority claims that the institutions convened regularly to establish surcharges for merchants, which were subsequently codified in laws and jointly enforced.
According to the paper, the banks mentioned are being informed of the results, which initiate a trial-like phase when the parties can submit arguments and supporting documentation before the watchdog’s plenary renders a final decision.
If the accusations are confirmed, it is unclear what the punishment would be.
It has the legal authority to punish businesses up to 10% of their yearly Mexican profits.
The only authority that COFECE has is to impose fines.
Although it can file class-action lawsuits and provide findings to prosecutors who can start legal action, it lacks the authority to bring criminal charges.
Red Amigo DAL, Banco Mercantil del Norte, Banco Nacional del Ejercito, Fuerza Aerea y Armada, Servicios Financieros Soriana, Banco Regional, Banco INVEX, and Banco Azteca are a few of the other organizations mentioned.
Among them are Banca Afirme, Banca Mifel, Tarjetas del Futuro, Liverpool PC, Crediclub, Oplay Digital Services, Caja Morelia Valladolid, Banco del Bajio, Banco Inbursa, and Klar Technologies.
In the past, COFECE has taken high-profile actions against other significant sectors.
The agency fined 21 individuals and five pharmaceutical distributors approximately 903 million pesos ($48.65 million) in August 2021 for ten years of limiting the supply and regulating the pricing of essential medications from 2006 to 2016.
It found evidence of systematic price manipulation and market division and fined more than 50 liquefied petroleum gas distributors in multiple states over 2.4 billion pesos in October 2022.
