Chile’s National Economic Prosecution (FNE) has moved once again to end the monopoly held by Transbank, the company which handles the credit card transactions within the country, and which authorities say has harmed consumers since its 1991 inception.
On January 13th 2017 the country’s competition authority, the TDLC, issued a recommendation to modify the legal concepts and all necessary regulations to allow for greater competition in the credit card payment industry. The court’s statement recommends “prohibiting joint actions by issuing banks when acquiring accounts”. In other words, banks will have to act independently when seeking to register new businesses to the payments system.
Chile’s dual competition authorities have remarked on the importance of creating a more competitive market for local credit card users, as any extra charges on the retail price is passed on to consumers. Due to the recommendation having been issued by the TDLC, the country’s Executive branch is obligated to respond, explaining why it chooses to protect this policy or not. Proposals made have no binding or obligatory effects.
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