By Chrysostomos Tsoufis

Four days before Christmas, the Competition Commission reserved in the 4 systemic banks, Attica Bank and the Hellenic Union of Banks, the largest fine ever imposed amounting to €41.7m. The fine would have been even higher if the banks did not admit they were “wrong” and agreed to a series of compliance actions.

Specifically, the Competition Commission imposed fines:

-12.9 million euros to Piraeus Bank

-9.9 million euros to National Bank

-9.1 million euros to Alpha Bank

-7.9 million euros at Eurobank

-143,000 euros to Attica Bank

-1.5 million euros to EET

According to the conclusion of the Commission’s investigations and what banking sources support, the 4 systemic banks were found “foul” in 2 issues:

  • The simultaneous imposition of a fee of up to €3 on cardholders who made a withdrawal through an ATM of a different bank than the one that issued their card. The banks claim that in 2/3 of the cases these charges concerned tourists since Greek consumers seek to make withdrawals from their banks’ ATMs. The infringement according to the Commission’s finding has been continuous and single since 2018.
  • The exchange of information in the two years 2018-2019 with the aim of imposing commissions and charges on a multitude of transactions – among others the issuance and acceptance of payment cards, payment accounts, cash transactions, loans – which until then had no charges. The “understanding” also concerned the establishment of uniform packages of banking services. The charges were not ultimately imposed as the banks emphasize but they admit that they “discussed”.

In this context, EET was fined because it was considered that it was the one that facilitated the exchange of information, that is, that it acted as a Facilitator.

The case began in November 2019 when the committee’s agents made a coordinated raid on the banks’ headquarters in order to collect evidence. Evidence which almost 4 years later led to the imposition of mammoth fines.

In addition to the ex officio investigation, there was also a complaint by VIVA – which was vindicated – for obstacles to its entry into the market.

In addition to the fines, the banks also agreed to a series of “compliance” actions.

First, they are obliged to reduce the commission they charge per transaction from New Year 2024:

– Piraeus Bank from €3 to €2
– National from €2.60 to €1.90
-Alpha Bank from €2.50 to €1.80
-Eurobank from €2.50 to €1.80
– Attica Bank from €2 to €1.50

These fees must remain fixed for 3 years while there is a review clause by the Competition Commission for 2 more years. In case of non-compliance a new fine will be imposed.

In order to avoid similar incidents in the future, banks will undertake the obligation to formulate and implement internal compliance programs.

Sources in the banking industry – members of which were meeting until late last night – stressed that the exchange of information took place in the context of a necessary institutional dialogue with VISA and Mastercard on the occasion of the change in the pricing of specific transactions, mainly at the European level, as well as in supervisory dialogue framework for charges with the Bank of Greece. The legal dialogue between the credit institutions and EET was necessary in view of the strict framework that was in force in Greece and prohibited certain commissions. In no case was there coordination to set a tariff, which is also confirmed by the EA settlement process.