Caixa Geral de Depósitos is one of the target banks of the process
Despite dragging the case of the board cartel until the fine of 225 million euros prescribe, 14 Portuguese banks may now have to pay more than 5,000 million euros in compensation to injured customers.
The Lisbon Court of Appeal annulled the Flim of 225 million euros imposed by the Competition Authority (ADC) on 14 Portuguese banks in the case of the bank cartel, due to the prescription of the process. However, experts warn that the decision does not exempt the financial institutions of any claims for compensation from affected clients.
The annulment of the fine, applied by ADC in 2020, was due to the understanding that the prescription period was not suspended during the period when the Court of Justice of the European Union (TJUE) analyzed the case. This factor dictated the expiration of the penalty imposed on banking institutions, including Caixa Geral de Depósitos, Millenium BCP, Santander and Montepio, among others.
Despite this decision favorable to banks, ius omnibus, an association that promotes collective actions against these entities, clarifies that the consumer rights to be compensated did not prescribe. The deadlines for compensation requests are distinct from administrative processes and were interrupted as soon as popular actions were started. These actions require more than 5 billion euros for the damage caused to customers, reports to.
The case dates back to 2012, when Barclays denounced a confidential information sharing scheme Among competing banks, affecting competition in the credit market. After years of investigation, ADC applied the fines in 2020, but the institutions resorted to the process to drag themselves to their prescription.
The decision of the Court of Appeal does not change the recognition of the infraction, already confirmed by the Competition Court and the TJUE. Economist Abel Mateus, former president of ADC, warns that banks will still face significant financial challenges with civil processes. “The amounts claimed in popular actions are far superior to the annulled fine And the infractions are proven, ”he says.
In addition to the financial consequences, the case also impacts the reputation of the banking sector. Experts point out that the formation of the cartel has impaired the operation of the market, equating it with a monopoly by coordinating the interest rates of the credits to housing.
Now, ADC evaluates possible appeals against the decision, and may appeal to the Constitutional Court or submit a complaint to the Court of Appeal. However, injured consumers continue to fight in court for compensation, using the TJUE judgment as a strong argument in their favor.
