The UK’s Competition Appeal Tribunal has ruled that the multilateral interchange fees charged by Visa and Mastercard to retailers are in breach of European competition law, in a major legal setback for two of the world’s largest payment processing firms.
The unanimous decision comes as part of a protracted legal battle involving multiple claims brought by merchants, who argue that the fees they were required to pay were unlawfully high.
David Scott, global managing partner at law firm Scott+Scott, which represented the merchants in the case, described the outcome as “a significant win for all merchants who have been paying excessive interchange fees to Visa and Mastercard,” in comments to Reuters.
Both Visa and Mastercard have indicated they will challenge the ruling.
“Mastercard strongly disagrees with today’s decision, which is deeply flawed, and will seek permission to appeal,” a spokesperson for the company told Reuters.
The ruling could have far-reaching implications for how transaction fees are levied in the UK and potentially across Europe, depending on the outcome of any appeals.
Copyright © 2018 RegTech Analyst
