Brazil: MasterCard approaches regulator, gets slapped with investigation

Brazilian regulator CADE refused a request for consultation by MasterCard Brasil Soluções de Pagamento Ltda. The firm had approached the agency for consultation regarding the legality of their “Information Request Clause”.

The agency threw out the request, claiming MasterCard had failed to be specific and clear regarding the exact subject of the consultation, as the regulations demand. CADE’s tribunal determined the request had therefore not fulfilled the necessary requirements.

However, CADE was able to detect several issues which, in their view, warrant a deeper investigation into the company in order to find any possible threats to the market, which could not be achieved with a simple consultation. “The analysis of this matter demonstrates the need to carry out more probes into the markets affected by those who certify and provide these services. The card payments market and the classification of its agents is far more complex than what the company has presented in their request.: said Paulo Burnier, the Tribunal’s Reporting Commissioner.

Source: CADE

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