20 August 2017
visit www.avoka.com

MasterCard slapped with EU antitrust charges

30 June 2006  |  8832 views  |  0 Mastercard logo

The European Commission has formally charged MasterCard with breaking antitrust rules and restricting competition between banks by pre-determining interchange fees charged for cross-border card transfers.

The EC says it has sent MasterCard a supplementary Statement of Objections (SO) outlining the charges.

The Commission says it "takes the preliminary view that MasterCard restricts competition between member banks by pre-determining a minimum price retailers must pay for accepting MasterCard and Maestro branded payment cards".

The regulator warns it could "prohibit MasterCard's interchange fees if the commission is ultimately not convinced that possible efficiencies of MasterCard's interchange fees sufficiently outweigh any restrictive effects on price competition between merchant banks".

This latest SO follows an earlier statement of objections sent to MasterCard in October 2003 which detailed the Commission's concerns that cross-border interchange fees are too high.

Earlier this year the Commission threatened the payment card industry with antitrust action following a sector inquiry which showed several barriers to entry into the European markets, including technical obstacles and practices by banks and networks that may raise costs for new entrants.

Earlier this month MasterCard claimed victory in a six-year battle with the UK's Office of Fair Trading over interchange fee arrangements after the Competition Appeals Tribunal (CAT) quashed an earlier ruling by the watchdog that fees that existed before November 2004 had infringed competition rules.
KeywordsLEGAL

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

MasterCard shares soar in market debut

MasterCard shares soar in market debut

25 May 2006  |  6606 views  |  0 comments
UK watchdog to probe new MasterCard fees

UK watchdog to probe new MasterCard fees

02 February 2006  |  7189 views  |  0 comments
MasterCard to appeal OFT ruling on interchange fees

MasterCard to appeal OFT ruling on interchange fees

06 September 2005  |  8410 views  |  0 comments
Mastercard interchange fees are anti-competitive says OFT

Mastercard interchange fees are anti-competitive says OFT

10 November 2004  |  7944 views  |  0 comments
European Commission investigates MasterCard fees

European Commission investigates MasterCard fees

30 October 2003  |  5830 views  |  0 comments
Visa and MasterCard to appeal Australian Federal Court reform ruling

Visa and MasterCard to appeal Australian Federal Court reform ruling

10 October 2003  |  5611 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.dorsum.euvisit www.niceactimize.comvisit www.abe-eba.eu

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9950 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8383 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7983 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
7876 views 0 | 3 tweets | 1 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
7249 views comments | 15 tweets | 13 linkedin

Featured job

Find your next job