The agency responsible for competition regulation in Mexico has reportedly found that 21 banks and financial institutions in the country are likely to have been fixing fees linked to deferred credit card payments, according to a report by Reuters.

A 649-page document from the Comisión Federal de Competencia Económica (COFECE) which was seen by the news agency lists the organisations allegedly involved in the joint price fixing, including the Mexican subsidiaries of HSBC, Santander, and Scotiabank.

The document suggests that there is enough evidence to indicate that these financial institutions could have been involved in anti-competitive practices.

The new comes several years after COFECE launched an investigation into monopolistic practices happening in the market for services related to credit card deferred payments in interest-free monthly instalments.

The investigation, which was set in motion in 2022, focused on the possibility that firms could be fixing prices and establishing mechanisms to restrict the supply in the market, as well as exchanging strategic information.

According to Reuters, the watchdog is alleging that the 21 financial institutions met regularly to set surcharges for merchants, which were subsequently formalised in regulations and jointly rolled out.

The government body also alleges that firms excluded some merchants from the market.

In accordance with Mexico's Federal Economic Competition Law, if a monopolistic pratice is proved, a firm could be fined up to 10 per cent of their income.

Those who have collaborated, facilitated or induced these practices could also be financially sanctioned.

Other companies mentioned in the document include Red Amigo DAL; Banco Mercantil del Norte; Banco Nacional del Ejercito, Fuerza Aerea y Armada; Servicios Financieros Soriana; Banco Regional; Banco INVEX, and Banco Azteca.

Banca Afirme; Banca Mifel; Tarjetas del Futuro; Liverpool PC; Banco del Bajio (BBAJIOO.MX), opens new tab; Banco Inbursa (GFINBURO.MX), opens new tab; Klar Technologies; Crediclub; Oplay Digital Services; Caja Morelia Valladolid and Banco Ahorro Famsa were also listed.

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