Administrative Council for Economic Defense (CADE) and the Brazilian Central Bank (BACEN) suspend agreement allowing payments via WhatsApp in Brazil25/06/2020
Por: Paula Salles, Fernanda Garibaldi, Vitória Oliveira
Due to competition and regulatory concerns, CADE and BACEN have, out of precaution, suspended the new payment service within the message platform WhatsApp. The decision considered that this service, conceived by Facebook and Cielo, could cause irreversible competition damages due to Cielo’s significative market-share within the national credential market in transaction capture. From a regulatory standpoint, due to a new BACEN provision, this operation is now subject to BACEN’s supervision and regulation. The suspension of this payment transactions service via WhatsApp obliges Facebook and Cielo to present further information to the above-mentioned authorities.
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