The EU General Court has rejected MasterCard’s appeal of the European Commission’s 2007 decision to ban its cross-border multilateral interchange fees (MIF). The European Commission had found that MIF violate EC Treaty rules on restrictive business practices (Article 81), writing in the press release accompanying the decision that interchange fees “inflated the cost of card acceptance by retailers without leading to proven efficiencies.” The General Court agreed: “The methods of setting the MIF tended to overestimate the costs borne by the financial institutions on issuing payment cards and, moreover, inadequately to assess the advantages which merchants derive from that form of payment” (as quoted in Reuters).
Although this decision applies directly to MasterCard, the European Commission will likely set its sights on Visa Europe next. According to Reuters, Joaquín Almunia was readying formal charges against the credit card company in January.
Full content: Reuters
Related content: The Drama of Interchange Fees (Vitor Bento, Portuguese Council of State)
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Conducts First-Ever Raids on a Company Under Foreign Subsidies Regulation
Apr 23, 2024 by
CPI
FTC Moves to Ban Non-Compete Agreements, Aiming to Boost Labor Mobility
Apr 23, 2024 by
CPI
Federal Judge Nods at $418M Deal in Real Estate Antitrust Suit
Apr 23, 2024 by
CPI
Mexican Watchdog Probes Amazon and Mercado Libre Over Loyalty Bundles
Apr 23, 2024 by
CPI
Competition Commission of India to Probe AI Landscape for Competition
Apr 23, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI