Amendment of the Banking Ordinance - reintroduction of prohibition on tied sales
After being repealed at the beginning of January 2014, the provision on prohibition on tied sales has been reintroduced in the Government Emergency Ordinance No 99/2006 on credit institutions and capital adequacy (the Banking Ordinance).
Credit institutions cannot make the granting of loans or provision of other products/services to clients conditional upon (i) selling or buying shares or other equity securities/financial instruments issued by the credit institution or any other entity (which is a member of the group of the credit institution), or (ii) the client accepting other products/services provided by the credit institution or any other entity (which is a member of the group of the credit institution) which have no connection with the crediting process or the requested product/service.
The prohibition on tied sales is also regulated under competition legislation (if certain market share thresholds are applicable) and consumer protection legislation.
However, in contrast to the prohibitions set out by competition law, tied sales are prohibited under the Banking Ordinance per se, irrespective of the market share of the company involved.