Following this announcement, the complaint outlines a series of anti-competitive practices by Norwegian banks, domestic and international financial services providers, financial institutions, as well as additional actors which operate under ownership and control of the Norwegian banks.
Neonomics has asserted that these practices defy the principles of Payment Services Directive (EU 2015/2366, “PSD2” and acts in accordance with the provisions of Norwegian Competition Act.
PSD2, implemented in Norway in 2019, was developed with aim to foster competition and innovation by enabling new entrants to offer payment services. However, Norwegian banks and FIs have actively undermined these goals, limiting access to critical payment markets for customers and businesses alike. They have also obstructed the development of alternatives to their proprietary AvtaleGiro product, delivered by Mastercard Merchant Services, a subsidiary of Mastercard, which is deeply ingrained within the banks’ existing operations and core business models. These practices have hindered competition, innovation, as well as consumer choice.
Included in the core issues of the complaint are market entry barriers (Norwegian banks have coordinated to block access to direct debit payments, effectively excluding new entrants, an exclusionary behavior that stifled development and deprived consumers and merchants of potential alternatives), unfair terms and pricing (banks have applied unreasonable prices, terms, and conditions for essential services, such as client accounts and delegated strong customer authentication), as well as preferential treatment of dominant players and coordinated conduct that supresed competition (the banks have engaged in coordinated actions through entities like Bits AS in order to maintain their dominant market position, limit competition, as well as prevent third-party providers from gaining access to critical payment infrastructure).
Through this initiative, Neonomics calls on the Norwegian Competition Authority to conduct a thorough investigation of these practices thoroughly and take necessary measures in order to ensure a level playing field.
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