Open banking data vendor Neonomics has filed a formal complaint with the Norwegian Competition Authority (NCA), accusing the country’s banking sector of engaging in anti-competitive practices that hinder market innovation and fair competition.
Core Allegations
- Blocking Access to Direct Debit Payments
Neonomics claims that banks have coordinated efforts to restrict access to direct debit payment markets, protecting the dominance of the AvtaleGiro product, operated by Mastercard Merchant Services. - Unreasonable Pricing and Terms
The complaint alleges that banks impose unreasonable costs and conditions for critical services, such as client accounts and delegated Strong Customer Authentication (SCA). These barriers allegedly prevent third-party providers from effectively competing in the market. - Preferential Treatment
Neonomics also accuses banks of providing subsidies and preferential terms to established players like Vipps, Visa, and Mastercard, further disadvantaging emerging competitors.
Impact on PSD2 Goals and Market Innovation
The actions outlined in the complaint allegedly undermine the goals of the EU’s Payment Services Directive (PSD2), which was designed to increase competition, foster innovation, and provide more choices for consumers and businesses in the payment services market.
Christoffer Andvig, founder and CEO of Neonomics, highlighted the broader implications of these practices:
“The actions of the Norwegian banks not only undermine the core principles of PSD2 but also stifle competition, innovation, and choice in the payment services market. This behavior harms consumers and businesses alike, while protecting entrenched interests.”
Neonomics has urged the NCA to launch a comprehensive investigation into the allegations, enforce compliance with both EU and Norwegian regulations, and implement measures to restore fair competition.