On 30 January 2017, the United Kingdom (UK) High Court handed down a judgment in favour of MasterCard in a damages claim brought by UK retailers (including Next, Acadia Group and Asda). The claimants alleged that MasterCard’s multilateral interchange fees (MIFs) were illegally restrictive of competition, claiming GDP 437 million in damages.
MIFs are charges that are paid by a retailer to a cardholder's bank each time a cardholder makes a credit or debit payment. MasterCard argued that MIFs cover the costs of maintaining card systems.
Following an investigation, the European Commission (Commission) decided in 2007 that MasterCard's EEA MIFs restricted competition between acquiring banks and inflated costs of card acceptance without generating countervailing efficiencies. The
Already Subscribed? Sign-in
Access to this article is restricted to subscribers.
Read this article for free
Sign-up to read this article for free and discover our services.