UK tribunals have ruled that Visa and Mastercard's default multilateral interchange fees, which are charged to retailers, have infringed competition law.
Following this announcement, London's Competition Appeal Tribunal unanimously ruled that Visa and Mastercard's multilateral interchange fees breach European competition law, in a ruling in linked lawsuits brought by multiple businesses and merchants.
According to multiple business officials, the ruling represents a significant `win` for all merchants who have been paying excessive interchange fees to Visa and Mastercard. The liability trial, which led to this ruling book, took place in early 2024. A ruling following another trial to determine whether any of the alleged overcharge was passed on by retailers to customers is currently pending.
More information on the UK tribunal’s rule
The litigation over multilateral interchange fees, which are currently levied on retailers when cardholders make a transaction, has rumbled on for more than a decade in the region of Britain and elsewhere. Following this announcement, both Visa and Mastercard officials mentioned that the companies disagree with this decision, while also indicating their overall willingness to seek permission to appeal.
According to the information provided to Reuters, a Visa spokesperson said that the institution believes that the interchange represents a critical component to the process of maintaining a secure digital payments ecosystem that benefits all parties, such as customers, merchants, and banks. At the same time, a Mastercard spokesperson also mentioned in an official statement that the company strongly disagrees with the decision, as it finds it deeply flawed.
