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Antimonopoly Committee opens cases against two Ukrainian banks

Source : 112 Ukraine

PrivatBank and Oschadbank set inflated commissions for transactions that do not incur interchanging costs
20:12, 16 April 2021

Open source

On April 15, the Antimonopoly Committee of Ukraine (AMCU) opened cases against Privatbank and Oschadbank on the grounds of abuse of a monopoly (dominant) position in the acquiring services market. This was reported by the press service of of the AMCU.

"During 2018-2020, acquiring services were provided by about 30 banks, ie the domestic market is potentially competitive. However, it is PrivatBank and Oschadbank that have the opportunity to provide acquiring services with territorial coverage in Ukraine in full. Therefore, the largest traders usually choose the services of one or two of these banks at once. This position of PrivatBank and Oschadbank has structural signs of a monopoly position in the acquiring services market," the statement reads.

Related: Privatbank threatens to shut down Apple Pay, Google Pay in Ukraine

The AMCU noted that now it is already known that PrivatBank and Oschadbank set inflated commissions for transactions that do not incur interchanging costs.

"That is, in the absence of the need to pay interchanging, the acquiring bank did not change the amount of commission for acquiring. Accordingly, the merchant paid the same amount of commission regardless of the content of the service. This resulted in the establishment of inflated tariffs for services that are carried out within the same banking institution," the committee added.

Meanwhile, PrivatBank will be listed for sale.

Related: National Bank of Ukraine asks to block accounts of sanctioned smugglers

 

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