The payment function of the popular messaging platform WhatsApp remains suspended in Brazil, although local regulators have relaxed the restrictions imposed to its owner Facebook.
June 24th, the Board of Directors for Economic Defense of Brazil, locally known under the Portuguese acronym ‘CADE’, has suspended an agreement between Facebook and Brazilian payment company Cielo to process WhatsApp payments.
On June 30, he overturned the decision, but WhatsApp payments are still on hold. as a result of a parallel action by the Brazilian central bank.
CADE lifted its sanctions on Facebook and Cielo after receiving information from companies that showed a significant reduction in the risks originally identified by the inspection body..
The companies tried to assure CADE that their agreement would not affect the competitive landscape of the Brazilian payments sector.;; The documents say that Facebook and WhatsApp simply “offer an additional channel for payments between consumers and merchants”.
CADE now accepts that Business association “does not translate a closed payment system”, indicating that the agreement “offers the possibility to include other active substances in the chain of payment instruments”.
“There is evidence that the foundations that supported the decision to introduce a precaution do not exist, so it must be revoked.”CADE completed.
Despite the agreement, CADE will continue to investigate the associationand the regulator will emphasize this Any anti-competitive behavior leads to renewed sanctions against companies.
The Brazilian central bank has not yet moved
In an announcement, Cielo’s finance president, Gustavo Sousa, stated that “The company’s business (s) are still being analyzed by the Brazilian central bank and transactions via the WhatsApp application are still on hold“”