ICA’s decision against Bancomat’s project of direct fees for not-on-us withdrawals is final

At the end of October 2024, Bancomat S.p.A. (Bancomat) withdrew its appeal against an infringement decision adopted by the Italian Competition Authority (ICA). The decision concerned a project to switch from interchange fees to direct-fees for the remuneration of withdrawals at ATMs outside the cardholder’s bank’s network. According to the ICA this project violated Article 101 TFEU. During the proceedings and in the appeal, Lear assisted some of the Bancomat circuit’s banks that opposed the project. Lear argued that the new system would have had the effect of limiting competition in retail banking from smaller and more innovative banks. Indeed, banks with large ATM networks would benefit from network externalities and would have the ability and incentive to impose high costs on their rivals’ customers. Lear also showed that the Bancomat’s project would facilitate tacit collusion and lead to an increase in direct fees to cardholders. The ICA found these arguments well-grounded. It concluded that Bancomat’s project infringed Art. 101 (1) TFEU and that the conditions set in Art. 101 (3) were not met.