Argentina: CNDC approves Prisma’s divestment plans

Argentina’s National Commission for the Defense of Competition has accepted the divestment plan presented by PRISMA, clearing the way towards neutering the company’s dominant position and increasing competition in the market for credit cards and electronic payments.

PRISMA is currently owned by Visa International and 14 banks operating in Argentina. The commitment would see PRISMA’s shareholders sell 100% of the stock package and does not allow more than one bank that operates in the country to be a shareholder of the company in order to prevent conflicts of integration or collusion.

The agreement also prohibits PRISMA from marketing another brand of credit cards until there is another company in the market that carries the Visa brand. The deal also forces Prisma to provide its services (credit card processing and others) in a non-discriminatory manner to any newcomers.

This is the first time in Argentine history that an investigation by the CNDC for alleged anti-competitive behavior results in a divestment deal. “The case shows that in Argentina today there is a strong commitment to promoting competition in the key markets for trade development and economic growth,” said Esteban Greco, president of the CNDC.

Full Content: El Economista

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