If these suspicions are confirmed, the Commission may fine entities up to 10% of their annual worldwide turnover.
The European Commission on Tuesday accused banks Deutsche Bank and Rabobank of forming a cartel to distort competition in the trading of euro sovereign debt, through the exchange of sensitive information and other practices that violate EU rules between 2005 and 2016. pricing strategies in the secondary debt market.
The EU points out that both entities exchanged confidential information through emails and messages via online messaging platforms. In a statement, Brussels points out that it studied an agreement with the entities before announcing this investigation, but that these negotiations were interrupted due to lack of progress, restarting the formal antitrust procedure. The Commission assures, yes, that sending a statement of objections does not prejudge the outcome of an investigation.
The European Commissioner for Competition, Margrethe Vestager, pointed out about this research that “citizens must be able to trust that financial institutions do not engage in practices that restrict competition in bond trading markets. It is now up to Deutsche Bank and Rabobank to address our concerns.” In this sense, he added that “to ensure effective competition, it is essential that market participants determine their prices independently.”
On behalf of Deutsche Bank, it responded that it does not expect a fine following the Commission’s investigation and assures in a statement that the entity “co-operated proactively with the European Commission in this matter and has therefore been granted immunity from conditional fines”.
After this formal announcement, the period opens for the entities to present their allegations, although Brussels does not have a set deadline to examine their answers and make a decision. This is the third investigation opened by community services for anti-competitive practices in the debt market.
In the event that the file ends in a decision contrary to the companies, the Community Executive has the margin to impose a fine of up to 10% of the penalized’s annual worldwide turnover.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
