Tag: economy

European Union Government

The idea is to convince the companies who dominate the market to work with lesser prices, to reduce the profit edge and to diminish the barriers to the entrance of new competitors. In case that they demonstrate resistance, the government can leave for a harder action. As another study divulged in the end of March for the Ministries of Justice and the Farm and for the Central banking the sector very has a tax of profitability above of average practised in the Brazilian economy and this necessary picture to be I coat. According to survey, the profit of the credenciadoras (the companies that take the cards for the store) increased 300% between 2003 and 2007, passing of almost R$ 600 million stop close to R$ 2,5 billion. The study she considers that the edge of profit of the companies disproportionately is raised in comparison with the risk of the activity. Moreover, the edge of profit in Brazil is well superior to the one of the European Union.

Another option of the government, considered more difficult to implement and evaluated as more interventionist, is to determine the desverticalizao of the sector. Today, the companies of credit card control the process all: credenciamento, supply of payment terminals, captures and processing of transactions, guiding of authorization order and compensation and liquidation. This would diminish the fire power of the company of the sector, therefore the verticalizao is the biggest source of the power of these companies. The alternative most radical, but not desired for the government, it is to transform the segment into a regulated sector, what it could mean the price control of prices. Beyond these possibilities, the government studies to promote some regulation of the sector, being tried to close breaches that guarantee the concentration of the system and to stimulate a bigger competition. Bibliography: Periodical Leading Brazilian business newspaper of 28 of April of 2009Jornal the State of So Paulo of 29 of April of 2009