ROME, April 2 (Reuters) - Italy's competition authority said on Thursday it had fined several companies of the Revolut group more than 11 million euros ($12.68 million) for alleged unfair commercial
Italy fines Revolut over $13 million for alleged unfair commercial practices
Details of the Revolut Fine and Regulatory Findings
Background and Announcement
ROME, April 2 (Reuters) - Italy's competition authority said on Thursday it had fined several companies of the Revolut group more than 11.5 million euros ($13.25 million) for alleged unfair commercial practices.
Regulator's Allegations Against Revolut
Misleading Statements and Aggressive Practices
The European fintech group made misleading statements about its investment services and used aggressive and deceptive practices in the management of its banking services, the regulator said in a statement.
Revolut's Response
Revolut strongly disagrees with the authority's findings and will appeal the decision in the Italian courts, a spokesperson said in emailed comments, adding the decision will have no impact on Revolut’s operations or financial position.
"We remain confident that our communications are clear and transparent. Protecting our millions of customers is our absolute priority," the statement said.
Breakdown of Fines Imposed
Fines for Breaching Consumer Protection Rules
Lack of Clear Information on Investment Services
The watchdog said it imposed a 5-million-euro fine on Revolut Securities Europe UAB and Revolut Group Holdings Ltd for breaching consumer protection rules by failing to give its customers "clear and comprehensive information" on additional costs and limitations on commission-free investments.
Fines for Aggressive Account Management
The competition regulator, which also polices consumer rights, fined the two companies a further 5 million euros for "aggressively managing and omitting, or providing unclear information" on conditions and procedures for suspending, limiting, and blocking payment accounts.
Additional Fine for Account Transition Clarity
Finally, it imposed an extra 1.5-million-euro fine on the same two companies for failing to clearly explain requirements and times for obtaining an Italian bank account instead of a Lithuanian one.
Revolut's Operations and Compliance
The fintech company, which is headquartered in London, is operating in the European Union under a Lithuanian licence and is under the supervision of the European and Lithuanian central banks.
The spokesperson said Revolut operated in line with Italy’s rigorous banking rules and that "account reviews are mandatory and necessary to protect customers and safeguard the integrity of the financial system." The transition to Italian bank accounts was carried out in accordance with rigorous local banking protocols, the spokesperson said.
Additional Information
($1 = 0.8678 euros)
(Reporting by Giulia Segreti in RomeEditing by Alvise Armellini and Tomasz Janowski)
