The Cabinet Council of Panama has concluded a significant judicial process by approving resolutions 131-25 and 132-25. This formalizes a judicial settlement between the Authority for Consumer Protection and Competition Defense (Acodeco) and the financial services companies MasterCard and Visa. The agreement obligates the financial giants to suspend their PIFO and EMLP programs for two years, which were found to be anti-competitive in the market for electronic payment services. Additionally, each company must contribute B/.50,000 to financial education programs. For the following three years, any future implementation of these programs must be pre-approved by Acodeco. Within 30 days, MasterCard and Visa must also post a B/.250,000 compliance bond each in favor of the National Treasury. This action follows a lawsuit filed in December 2023, which alleged monopolistic practices in the market for electronic payment services in Panama. The companies have also committed not to apply rules that could harm local payment processors (Fintech companies) and to use a consultation mechanism for any future business practices that could restrict competition.
