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Portuguese Court Overturns €225 Million Fine for Banking Collusion Due to Statute of Limitations

By  |  February 11, 2025

A Portuguese appeals court has ruled that 11 major banks previously convicted of collusion in the housing loan market will not be required to pay a total fine of €225 million ($232 million) due to the expiration of the statute of limitations on the case, according to Reuters.

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    The initial ruling, handed down by the Santarém Competition Court in September, determined that the banks engaged in anti-competitive practices by exchanging sensitive information related to mortgage loan spreads, loan amounts, and commercial strategies between 2002 and 2013. This conduct was found to have distorted competition in the financial sector. The court supported the fine recommended by the Portuguese Competition Authority. However, the banks appealed the decision, arguing against the sanctions.

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    Per Reuters, Lisbon’s Court of Appeal issued a statement on Monday declaring that the statute of limitations had expired as of September 1, 2023, or, at the latest, on February 11, 2024, when considering laws enacted during the COVID-19 pandemic. As a result, the case has been dismissed without any financial penalties imposed on the banks.

    Among the institutions involved, state-owned Caixa Geral de Depósitos faced the largest individual fine of €82 million. Millennium bcp was assigned a €60 million penalty, while Santander Totta and Banco BPI—owned by Spain’s CaixaBank—were fined €35.65 million and €30 million, respectively.

    Despite the appeals court’s ruling, there remains a possibility for further legal action. The Portuguese Competition Authority and public prosecutors retain the right to escalate the matter to the Constitutional Court, potentially prolonging the legal battle.

    Source: Reuters