EU: Latest crackdown on MasterCard inter-bank fees

The European Commission has announced the launch of a formal investigation into MasterCard in relation to the credit card company’s inter-bank fees. The Commission reportedly is concerned over certain practices of the payment company, specifically in regards to inter-bank fees paid by cardholders that are not from the European Economic Area. Additionally, the bank will look into the practice of so-called cross-border acquiring, which prohibits merchants from utilizing benefits from rival banks established elsewhere within the internal market; MasterCard’s businesses practices in general will also be investigated. The Commission notes that the practices being investigated may hamper competition and lands fees on consumers. The Commission plans to announce a proposal for inter-bank fee regulation before this year’s summer. The Commission ruled in 2007 that MasterCard cannot impose fees on its customers for cross-border inter-bank fees within the European Economic Area, a ruling which MasterCard appealed.

Full Content: European Commission

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.