Revolut, Antitrust fine of 11 million for unfair commercial practices
According to the Agcm, the company had 'spread misleading messages about investment services'. The reply: 'We are correct, we will appeal'
The Antitrust sanctioned the fintech bank Revolut with more than EUR 11 million for unfair business practices. According to the Agcm, Revolut 'disseminated misleading messages about the investment services offered and used aggressive and deceptive methods in the management of banking services'.
The fines were imposed on Revolut Securities Europe Uab, a group company offering investment services in Europe, and Revolut Group Holdings Ltd. In detail, the Competition and Market Authority fined the two companies for EUR 5 million for violating Articles 20, 21 and 22 of the Consumer Code: in fact, they failed to provide customers, already at the time of the 'first hook' advertisement, with clear and comprehensive information on the presence of additional costs and limitations that characterise commission-free investments, which include fractional shares that differ significantly from whole shares, inter alia, in terms of risks, rights and transferability.
The Authority also imposed on Revolut Group Holdings Ltd and Revolut Bank Uab, group companies offering banking services in Europe, a fine totalling EUR 5 million for aggressive handling and for having omitted (or unclearly provided) relevant information on the conditions and modalities for suspending, restricting and blocking payment accounts. In particular, the companies failed to provide sufficient pre-contractual information, notice in the vicinity of the adoption of the restrictions, and adequate comparison or assistance once the restriction had been implemented.
Since the impossibility, even for long periods, of accessing one's own funds and related services, hinders the exercise of contractual rights and the possibility of meeting life's needs, even urgent ones, the Authority considered this conduct to be in breach of Articles 20, 21, 22, 24 and 25 of the Consumer Code, because it is capable of unduly conditioning the freedom of choice of consumers and micro-businesses. Lastly, the Antitrust Authority also fined Revolut Group Holdings Ltd and Revolut Bank Uab EUR 1.5 million for not having provided clear and exhaustive information on the requirements and timing for obtaining the Italian Iban (with initials It) instead of the Lithuanian Iban (with initials Lt), in breach of Articles 20, 21 and 22 of the Consumer Code.
The rebuttal of the British fintech founded by Nikolay Storonsky and Vlad Yatsenko immediately arrived. Revolut, in fact, 'absolutely does not agree with the Agcm's conclusions and will appeal'. In an official statement, the bank says it is 'confident that our communications are clear and transparent. Protecting our millions of customers is our top priority. We operate in accordance with strict Italian banking standards. Account audits are mandatory and necessary to protect our customers and the integrity of the financial system,' the company emphasises.
