Brazil Antitrust Watchdog Asks Facebook to Explain WhatsApp’s Fee Payment Structure
Image for representation.
The service on Facebook’s WhatsApp messaging platform was blocked by Brazil’s central bank eight days after the launch.
Last Updated: July 28, 2020, 11:58 AM IST
Brazil’s antitrust watchdog is asking Facebook Inc to explain the fee structure for its short-lived payments service launched in June in partnership with card processor Cielo SA, according to a document seen by Reuters.
The service on Facebook’s WhatsApp messaging platform was blocked by Brazil’s central bank eight days after the launch. Facebook charged merchants a 4% fee per transaction, above-market prices, but transfers among individuals were free.
Cade, as the watchdog is known, said it wanted to understand the rationale for the fee and see if the deal prevented other card processors from joining the payment platform as Cielo dominates Brazil’s market with a 40% share.
Facebook and Cielo have said the deal did not exclude others from joining. The antitrust watchdog also asked Facebook to explain how it reached agreements with Cielo and card issuers Nubank, Banco do Brasil SA and Sicredi.
Price AS ON 28 July 2020