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ACCC sues Mastercard for monopolising card payment market

Monday 30 May 2022 12:23 CET | News

The Australian Competition and Consumer Commission (ACCC) has announced it started legal proceedings against Mastercard Asia Pacific and Mastercard Australia for alleged anti-competitive conduct.

According to the allegations, the global card issuer substantially lessened competition in the supply of debit card acceptance services, between November 2017 and November 2020. The regulator claims that Mastercard abused its privileged market position to ranker higher in the credit card acceptance services under the Reserve Bank of Australia’s (RBA) least-cost routing initiative.

The initiative aimed to offer merchants the possibility to choose their preferred debit card network that would process their contactless dual-network debit card payments and wanted to increase competition while reducing payments costs associated with processing debit card payments for businesses.

The ACCC alleges that Mastercard signed agreements with over 20 major retailers, including fast food chains, clothing retailers, and supermarkets to offer cheaper interchange rates for processing credit card payments if they agreed to process their Mastercard-Eftpos debit card transactions through Mastercard’s network rather than the Eftpos one.

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Keywords: regulation, credit card, debit card, card scheme, payment processing, scheme fee, transactions , transaction monitoring, online payments
Categories: Payments & Commerce
Companies: Australian Competition and Consumer Commission, Eftpos, Mastercard
Countries: Asia, Australia, Oceania, Pacific
This article is part of category

Payments & Commerce

Australian Competition and Consumer Commission

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Eftpos

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Mastercard

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