Cofece investigates illegal exclusivity of payment service providers

Mexico City. Given the possible existence of illegal exclusivity, the Federal Economic Competition Commission (Cofece) has launched an investigation against companies that provide payment, deposit and cash withdrawal services in stores, which affects the population that carries out any transaction.

The regulator, as usual, did not reveal which firms were involved, but they are the largest financial intermediaries that make transactions with banking institutions possible.

Cofece explained that when a dominant company in the financial services market establishes some exclusivity, it forces its marketers to only offer or acquire its products or services.

The agency added that these conditions mean that, by preventing the participation of other competitors, consumers have fewer options and are locked into the prices of the firm that has exclusivity.

The Commission, whose continuity will be discussed by the Congress of the Union, stressed that this issue is of interest because it allows the population in Mexico to pay for goods and services or to have cash, even if they do not have a bank account.

He stressed that if anti-competitive conduct is confirmed, the companies responsible could be fined up to 8 percent of their annual income, while the directors involved could be disqualified for up to 5 years and fined.

He noted that cash remains the most widely used means of payment by the population in Mexico, something that will remain the case until 2027.

The agency referred to data from the Bank of Mexico, indicating that 19 percent of Mexicans only have access to cash as a form of payment.

For this reason, “it is important that Mexicans without access to traditional financial services have several options that allow them to make payments, deposits and withdrawals in commercial establishments.”

Cofece noted that competition in these services fosters financial inclusion and benefits people, as financial institutions offer better products and services with greater transparency and at lower costs.

The autonomous body reiterated that as part of its functions of sanctioning and inhibiting practices that threaten the well-being of the population, it will continue to work to ensure that anti-competitive behavior does not go unpunished.