Bosnian Banks Fined €1.2 Million For Abuse Of Dominance

On November 6 2012 the Competition Council of Bosnia and Herzegovina fined UniCredit Bank dd Mostar, Raiffeisen Bank dd Sarajevo, Turkish Ziraat Bank Bosnia dd Sarajevo and Tenfore doo Banja Luka (a representative of Western Union Network (France) SAS) for abuse of a dominant market position.

This decision was rendered as a result of proceedings initiated on April 26 2012. The Competition Council determined that between 2005 and 2012, UniCredit Bank, Raiffeisen Bank, Turkish Ziraat Bank Bosnia and Tenfore had abused their dominant market position when effecting international money transfers between natural persons without a bank account in Bosnia and Herzegovina. The abuse of market position occurred when the banks entered into restrictive exclusivity clauses in agreements with Western Union Network (France) SAS.

Under these agreements UniCredit Bank, Raiffeisen Bank, Turkish Ziraat Bank Bosnia and Tenforewere designated as representatives of Western Union in the provision of money transfer services for Bosnia and Herzegovina. The Competition Council determined that Western Union had a...