Bradesco enters into an agreement with CADE regarding an investigation of anticompetitive practice against GuiaBolso

In the hearing of this Wednesday (7 October), the Administrative Council for Economic Defense (CADE) has entered into an agreement with the bank Bradesco regarding the investigation of alleged anticompetitive practices against GuiaBolso. The Tribunal approved a Cease and Desist Agreement (TCC) in which the bank has committed itself to cease the investigated practices and pay a financial contribution on the approximate amount of BRL 23.8 million.

The agreement was signed over the administrative proceeding that investigate an apparent abuse of dominant position and a refusal to contract by Bradesco, in detriment of Guiabolso, which would harm the company's economic activity and, consequently, free competition in the market of financial services.

For the Tribunal, the agreement submitted by Bradesco solves the identified problems, since it favours GuiaBolso on the data portability of the bank costumers’ that so expressly desire or request it. Therefore, from the agreement will be established opportunities for better services, price discount and increase in quantity as of the stir up of competitiveness in this market.  

“In accordance to the General Superintendence’s expression, I understand that, by providing an agreed and immediate solution, prior to the full validity of open banking in Brazil, the agreement will cause potential benefits and pro-competitive effects for the Brazilian market of financial services, by meeting the needs intended for the market with the aforesaid policy, that mainly aims to improve competition in this segment for the benefit of Brazilian consumers,” stated the president Alexandre Barreto in the decision.

Understanding the case

The case investigation started in July 2018, based on a complaint from the Secretariat for the Promotion of Productivity and Competition Advocacy (Seprac) of the former Ministry of Finance, present Ministry of Economy. Seprac alleged that GuiaBolso depends on information under bank Bradesco’s management in order to offer their customers financial management services. In addition, by providing credit offers by means of several financial institutions in its platform, GuiaBolso offers additional services that compete with part of the services provided by the bank.

During the investigation, CADE examined that the customers of GuiaBolso who are clients of other financial institutions authorize access to their bank information by entering their respective passwords on the application. Bradesco clients, on the other hand, were not able to enter their data directly on the platform because the bank established an additional random password to access their checking accounts. For the General Superintendence, there were evidences of economic crimes, considering that the behaviour of Bradesco would restrain fin-tech services that depend on bank account data of its clients, harming free initiative and free competition.

Access the Administrative Proceedings 08700.004201/2018-38.