Chile: Regulator troubled by Transbank monopoly

Chile’s National Economic Prosecutor (FNE) delivered a special report to the Free Competition Defence Tribunal (TDLC), presenting its arguments in support of a proposal, sent to the Executive, which aim to increase competition in the national payments market. The prosecutor’s report focuses on the need of limiting the possibility for collusion between banks through the Transbank system.

The report details the lack of competitive vigour, and how this has harmed businesses and consumers that have been subject to the unilateral conditions imposed by a single actor, Transbank, which has faced no real competition since 1991. The report gathers several testimonies from business owners, detailing their relationship with Transbank and several areas for improvement. The report argues that the presence of this monopoly has had a negative impact on prices, the quality and coverage of service, and the pace of innovation in the sector.

Source: FNE

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