Open banking data vendor Neonomics has filed a complaint with the Norwegian Competition Authority alleging anti-competitive practices in the payments market by the country's banking sector.
Neonomics, which is authorized by the Norwegian FSA as a licensed payment institution, alleges that banks have actively worked to undermine the goals of the EU's Payment Service Directive PSD2 by deliberately limiting access to critical payment markets.
The complaint allleges that Norwegian banks have coordinated to block access to direct debit payments, effectively excluding new entrants from competing with the monopoly of the established AvtaleGiro product, delivered by Mastercard Merchant Services.
Neonomics further alleges that banks have applied unreasonable prices and terms for essential services, such as client accounts and delegated strong customer authentication (SCA), creating insurmountable barriers for third-party providers attempting to compete with bank-led solutions.
Neonomics additionally alleges that the banking sector's efforts to prevent fair competition extend to providing subsidies and preferential terms to established providers, such as Vipps, Visa, and Mastercard.
Christoffer Andvig, founder and CEO of Neonomics states: “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. We urge the competition authorities to act decisively to restore fair competition and ensure compliance with both EU and Norwegian regulations.”
He is calling on the Norwegian Competition Authority to conduct a thorough investigation and take necessary measures to ensure a level playing field.