MasterCard poised to receive antitrust complaint from EU regulators

MasterCard is poised to receive an antitrust complaint from European Union regulators probing card payment fees, according to sources.

Regulators may send a statement of objections to MasterCard before the end of July, the sources said.

Such filings in antitrust probes are usually a precursor for fines. EU antitrust regulators have targeted swipe fees on credit- and debit-cards for more than a decade, warning that the way the charges are collectively agreed on is anti-competitive.

"MasterCard being much more internationally focused, it has been more inclined to fight than to settle so far," said Ruth Milligan, senior adviser on payment services at EuroCommerce, a group representing European retailers including Ikea, Carrefour and Tesco, which backs the European Commission's stance in the case.

The latest EU case, opened in 2013, targeted excessive fees when foreign visitors go shopping in the EU, as well as measures thwarting cross-border competition among banks that offer card services to traders.

The EU antitrust regualtor said at the time it would also investigate MasterCard’s “honor all cards” rule, which obliges a merchant to accept all types of cards from the company, including premium products bundled with add-ons such as insurance and travel services.

MasterCard "is working with the European Commission on the issue as part of an ongoing constructive dialogue", the company said. . The commission in Brussels declined to immediately comment on the EU probe. MasterCard's competitor Visa Europe has also tussled with the commission over its fees system. Last year, it pledged to cut levies for processing credit card payments in a settlement with the EU that would cut charges by 40 per cent to 60 percent. MasterCard in September lost an EU court challenge to a similar settlement.

- Bloomberg