Coherent Economics President Dr. Alan Frankel testified before the Tribunal de Defensa de la Libre Competencia - Chile's competition court - in Santiago, Chile on November 11-12 concerning the competitive structure of Chile's credit card and debit card acquiring (merchant services) market. In Chile, the major banks together formed Transbank, which as a result is a monopoly provider of card acceptance services to Chilean merchants. Dr. Frankel was retained by the Fiscalía Nacional Económica, the national competition authority, to analyze the structure of the market and how to reform the market to make it more competitive. As a result of a Supreme Court decision in the case, the Tribunal will issue its decision in the form of a recommendation to the President of the Republic of Chile for the submission of new proposed legislation.
Prior to delivering his testimony, Dr. Frankel spoke about the history of competition and monopoly power in payment systems before the Centro de Estudios Públicos (CEP), Chile's preeminent think tank. His presentation slides are available below and on the CEP website.