
The Portuguese Competition Authority (AdC) announced today the launch of an inquiry into the retail banking sector in Portugal to assess competitive conditions in the banking market. The inquiry aims to identify challenges in comparing banking products, difficulties customers face in contracting banking products, and challenges in switching between banks, as well as potential barriers and limitations to the entry of new companies, including digital platforms or non-banking entities, in the financial sector.
During a hearing in the parliamentary committee on budget and finance, AdC President Nuno Cunha Rodrigues stated that after receiving responses to the consultation launched today, which can be submitted until September 24, the AdC expects to have “conclusions by the end of the year” that “could lead to recommendations.”
“The results will be analyzed and, if necessary, will result in specific recommendations to operators, sector regulators, or lawmakers,” said Nuno Cunha Rodrigues.
According to the president, the financial sector is sensitive to market power due to regulatory, technological, or information asymmetry barriers, making it “essential to ensure that competition continues to be a transformative force” and promotes consumer choice.
The AdC president also discussed recent interventions by the regulator, noting its “consistent, impartial, and independent” actions, determined and supported by evidence.
In 2019, the AdC imposed fines totaling 225 million euros on 14 banks for concerted practices of exchanging sensitive commercial information, in the case known as the “banking cartel.”
In September 2024, the Competition Court confirmed the fines for the 11 banks that appealed. However, last February, the Lisbon Court of Appeal declared the infraction expired, considering the time when matters were under review by European justice.
Both the AdC and the Public Prosecutor’s Office filed appeals to the Constitutional Court to prevent the expirations, but these were rejected. In June, the AdC filed a complaint with the Constitutional Judges’ Conference regarding the court’s decision not to review the appeals, and a response is awaited.
In 2024, the AdC imposed a fine of nearly 14 million euros on the SIBS group for abusing its dominant position in the payment services sector. The company stated it would appeal, arguing the process “has no basis.” The case is with the Competition Court, with a decision pending.
Asked by lawmakers about the acquisition of Novo Banco by the French banking group BPCE, the AdC president said that the evaluation of the operation’s impact on the sector falls under the jurisdiction of the European Commission.