Competition Council: The CMI’s commitments are “substantial, credible and verifiable”

The Interbank Electronic Payment Center (CMI) and the nine shareholder banks of the latter have proposed commitments in order to improve the competitive functioning of the market for payment by electronic payment terminal (TPE) and online payment via bank card (PEL), announces the Competition Council.

“As part of the investigation of the referral from the company NAPS SA, the Center Monétique Interbancaire (CMI) and the nine shareholder banks of the latter sent to the Competition Council a proposal for commitments aimed at responding to the concerns of competition identified during the investigation of the case, and to improve the competitive functioning of the electronic card payment market (TPE and PEL),” indicates the Council in a press release published on Friday.

After examining the aforementioned proposal for commitments, the College of the Competition Council considered at its meeting on September 26, 2024, that these commitments are substantial, credible and verifiable, reports the same source.

To this end, the Interim General Rapporteur publishes the summary of the case and the commitments to allow interested third parties to present their observations, adds the press release.

Thus, the CMI undertakes, on a structural level, to transfer all merchant membership contracts to card systems (affiliation to TPE and PEL) for the benefit of payment institutions or any other subsidiary of banks dedicated to acquisition relating or not to the latter. Also, the Center undertakes to transfer contracts linked to its online payment gateway activity (Gateway E-commerce).

It is also a matter of actively and effectively anticipating the facilitation and completion of this transfer for the benefit of the new transferees, of making all the necessary provisions to guarantee the economic viability, value and competitiveness of its contracts during the transitional period. of twelve months from the date of the Council decision making the commitments obligatory.

In addition, the CMI undertakes to refrain from approaching any new customer or entering into new membership contracts for card systems or contracts linked to its online payment gateway activity (Gateway E-Commerce) to merchants ( B to C).

However, and in order to adapt to the competitive market context, the CMI may take all necessary measures to defend, preserve and manage commercial contracts concluded before the date of the aforementioned Council decision, while awaiting their completion. transfer to payment establishments of banks or other subsidiaries dedicated to acquisition.

In this regard, the CMI, which will be transformed into a technical processing platform on behalf of all local payment establishments, undertakes to guarantee access to its services under fair, transparent and non-discriminatory pricing and non-pricing conditions. .

As for the banks which are shareholders of the Center, they undertake to acquire, for the benefit of their payment establishments or any other dedicated subsidiaries, all merchant contracts which concern membership of the card systems (affiliation to the TPE and PEL), concluded from the date of the decision to be taken by the Council.

The CMI and the latter’s shareholder banks furthermore undertake, each as far as it is concerned, to ensure the principles of permanence and continuity of acquisition services without disruption or decline by capitalizing on technical and technological achievements in the field, particularly with regard to the various national and international partners including international schemes.

With regard to non-price behavioral commitments, the CMI and its shareholder banks undertake to implement a compliance program with competition law and immediately cease the practices that are the subject of the aforementioned competition concerns.

In addition, the CMI shareholder banks undertake to ensure that their payment institutions or dedicated subsidiaries are legally and economically independent, in order to allow them to enjoy functional and accounting autonomy, as well as not to commercialize TPE or PEL affiliation offers from their payment institutions or subsidiaries dedicated to acquisition.

However, banks may promote the acquisition activity at the level of their agency networks or by any other means, without prejudice to the right of the bank’s customer to contract with the acquirer of their choice.

As for the behavioral pricing commitments, the parties concerned undertake not to apply an interchange commission, per transaction of an amount greater than the ceiling set by the regulatory decision of Bank Al Maghrib relating to domestic electronic payment interchange fees.

The Competition Council recalls that interchange corresponds to the part of the acquisition commission paid by the acquirer (the one who contracts with the merchant) to the issuing bank (the one which issued the card to the bearer) during each payment by card.

This review of interchange will allow acquirers to make significant reductions in the prices of their merchant customers, which will promote the development of electronic payment by card by reducing the rate of the acquisition commission.

It should be noted that a transitional period and deadlines are planned as part of the progressive implementation of these commitments following a decision by the Competition Council. Also and to monitor the execution of these commitments, a monitoring entity will be created between the Competition Council and Bank Al-Maghrib.

In addition, the CMI and its shareholder banks have undertaken to transmit to the Competition Council from the date of the Council’s decision making the aforementioned commitments obligatory, and for a period of two years, a documented half-yearly statement. detailing the execution of the various structural and behavioral commitments made.

In accordance with the provisions of paragraphs 6 and 7 of Article 26 of Decree No. 2-14-652 taken for the application of the aforementioned law 104.12, the Competition Council publishes the commitments proposed by the CMI and its shareholder banks in order to to collect observations from the parties, the Government Commissioner and, where applicable, interested third parties within 30 days from the date of publication of this press release, i.e. October 30, 2024.

“At the end of this market test, and after examining the observations made, the Competition Council will make its final decision by making the aforementioned commitments obligatory for the parties, which will mark the closure of the procedure,” concludes the press release. .

LNT with MAP