The National Markets and Competition Commission (CNMC) announced that no violation was found and disciplinary proceedings against Caixabank and Bankia (now Caixabank) were archived. The case concerned alleged acts of unfair competition in the marketing of loans guaranteed to companies and self-employed individuals through the ICO Covid guarantee line, a matter reported this Monday.
The CNMC notes that, in response to the Covid-19 crisis, a special guarantee program was created to back loans from financial institutions to small and medium-sized enterprises (SMEs). The aim was to help these firms overcome the extraordinary liquidity shortfalls caused by the health emergency.
From April 2020, the CNMC began receiving complaints via the so-called Covid Mailbox. SMEs benefited from these ICO-backed loans but were also enrolled in contracts for additional products, notably life insurance, along with other insurance and financial products, and in some cases the refinancing of existing debt.
Confronted with such complaints, the CNMC decided to initiate a comprehensive investigation to examine the practices described under Article 3 of the Competition Act. This step sought to determine whether actions taken by the entities involved restricted competition or harmed customer interests.
During both the investigative phase and the resolution of the procedure, the CNMC ensured participation from the entities under investigation, representatives of consumers and users, small and medium-sized companies, and operators within the insurance sector, among others. A series of actions were undertaken to clarify the facts surrounding the case and to assess the conduct in question against the applicable competition standards.
Nevertheless, the CNMC underscored the limits of the analysis, highlighting that the Banco de España and the Instituto de Crédito Oficial operate within a distinct regulatory framework and that the case did not reveal relevant events or specific actions falling within their jurisdiction. The commission’s assessment therefore focused on the evidence before it and the scope defined by competition law.
After an extended examination, the CNMC concluded that the elements necessary to establish a violation of Article 3 of the Ley de Defensa de la Competencia (LDC) had not been demonstrated. The resolution reflects the commission’s careful weighing of the facts, the legal standards, and the overall market context involved in the Covid-19 guarantee program.