Tribunal Declares Card Fees Unlawful
The UK’s Competition Appeal Tribunal has ruled that Visa and Mastercard’s multilateral interchange fees violate European competition law. These fees, charged to retailers each time a customer uses a card, have been the subject of legal scrutiny for years. Merchants argue that these costs are unfair and inflate retail prices.
Merchants Celebrate Legal Victory
The decision follows coordinated lawsuits filed by numerous UK merchants. David Scott, global managing partner at Scott+Scott—the firm representing the claimants—called the ruling “a significant win for all merchants who have been paying excessive interchange fees.” Retailers across the UK may now pursue compensation, with this judgment setting a strong legal precedent.
Visa and Mastercard Respond
Both companies strongly disagreed with the tribunal’s ruling. A spokesperson for Mastercard said, “We believe the decision is deeply flawed and will seek permission to appeal.” Visa is expected to take similar legal action. The payment giants maintain that their fees support secure and reliable card services.
Future of Card Payment Regulations
The outcome of the appeal could have wide-reaching consequences. If upheld, this decision could force Visa and Mastercard to restructure their interchange fee models not just in the UK, but across Europe. It might also encourage further legal challenges from other businesses affected by these charges.
Implications for Retail and Consumers
For retailers, the ruling offers hope for lower transaction costs. For consumers, it could eventually lead to reduced prices if businesses pass along the savings. The case also signals that regulators are closely examining how large payment networks operate in competitive markets.
This judgment may be one of the most pivotal in shaping the future of card payment regulation in Europe.