The Court in Sønderborg has issued a definitive ruling against Sydbank, confirming that the financial institution violated a long-standing order from the Danish Competition Council. The judgment serves as a significant victory for the fintech industry, establishing that established banks cannot arbitrarily block payment service providers or their agents from the essential banking services they need to function.
At the heart of the case is Section 63 of the Payments Act, which mandates that banks provide access to account services on objective, non-discriminatory, and proportionate terms. By denying this access to an agent of a payment institution, Sydbank was found to have effectively engaged in anti-competitive “gatekeeping,” preventing a rival from offering payment solutions to businesses and consumers.
A Protracted Legal Dispute
The conflict dates back to June 2021, when the Danish Competition Council first ordered Sydbank to grant access to the unnamed agent. Despite the order, the bank refused to comply, leading the Council to issue a formal decision in 2023 declaring a violation of the original injunction.
Sydbank’s defense relied on two main arguments:
The “Agent” Loophole: The bank claimed that the legal obligation to provide access applied only to the payment institutions themselves, not to their third-party agents.
Revocation: The bank attempted to have the 2021 order annulled or the case reopened entirely.
The Court in Sønderborg rejected both claims. It ruled that the 2021 order was final because Sydbank failed to appeal it within the legal timeframe. More importantly, the court clarified that the legislature’s choice to include agents in the Payments Act was “completely deliberate.”
Why This Matters for the Market
Without access to bank accounts, modern payment institutions cannot settle transactions, exchange currency, or manage customer funds. If a bank—which often offers its own competing payment services—can unilaterally decide who gets an account, it can effectively “starve” its competition out of the market.
Tine Rønde, Deputy Director General of the Danish Competition and Consumer Authority, emphasized that this access is vital for the existence of competition. The verdict ensures that the “intense rivalry” in the payment sector remains driven by the quality of service and innovation, rather than by who controls the entry points to the financial system.