AdC Declares ‘Banking Cartel’ Prescription Unconstitutional, Pursues Appeal for Justice

The “cartel da banca” case is heading to the Constitutional Court. On February 20, 2025, the Autoridade da Concorrência (AdC) filed a challenge against a ruling by the Lisbon Court of Appeal, claiming it misinterpreted constitutional norms. What does this mean for the future of banking regulations in Portugal?

Understanding the Implications of the “Cartel da Banca” Case for Portugal’s Banking Sector

What are the potential outcomes of the AdC’s appeal? This case could redefine how banking regulations are enforced in Portugal. The Lisbon Court previously ruled that a €225 million fine against several banks was no longer valid due to a statute of limitations. The AdC argues this interpretation is unconstitutional, raising critical questions about regulatory authority.

Key Details of the “Cartel da Banca” Case and Its Broader Impact

The “cartel da banca” case involves several major banks in Portugal, including Caixa Geral de Depósitos and Millennium BCP, facing substantial fines for anti-competitive practices. The AdC’s challenge centers on two main constitutional issues:

• The interpretation of the statute of limitations regarding competition law violations.
• The application of EU law principles in national courts.

What Are the Financial Stakes for the Banks Involved?

The financial implications are significant. The AdC has imposed hefty fines on several banks, including:

• Caixa Geral de Depósitos: €82 million
• Millennium BCP: €60 million
• Banco BPI: €30 million
• Others totaling over €225 million.

If the AdC’s appeal succeeds, these fines could be reinstated, dramatically affecting the banks’ financial health and investor confidence.

How Does This Case Reflect on EU Competition Law?

This case highlights the complexities of enforcing competition law within the EU framework. The AdC argues that the Lisbon court’s ruling undermines the effectiveness of EU regulations. If upheld, it could set a precedent for how competition cases are handled across member states.

As the “cartel da banca” case unfolds, it remains crucial for stakeholders to stay informed about its developments. The implications extend beyond Portugal, potentially influencing international banking practices and regulatory frameworks.