A £19 billion class action has been launched against MasterCard due to alleged anti-competitive credit card fees.<\/p>\n
This Autumn, lawyers will be appearing at a Competition Appeal Tribunal in order to gain permission for them to bring a class claim forward on an opt-out basis for those affected by MasterCard’s alleged anti-competitive behaviour.<\/p>\n
By bringing a claim on an opt-out basis, those that have been affected by the MasterCard anti-competitive behaviour can automatically become a part of the class bringing a claim forward unless they decided to opt-out of making a claim.
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The claim is following on from a previous claim that was made against MasterCard by the European Commission who found that MasterCard have been imposing charges on the use of its debit and credit cards on cross border transactions – known as an interchange fee, which is against EU law.<\/p>\n
In 2014 it was ruled that MasterCard had abused its dominant market position by imposing such anti-competitive charges.<\/p>\n
Liability has already been established from the previous case against the European Commission. This is a follow on claim in order to seek damages on behalf of those that suffered a loss due to the MasterCard charges.<\/p>\n
The £19 billion figure was reportedly based on expert analysis and public data. A figure like this could result in payments in the hundreds of pounds region for affected victims.<\/p>\n
By charging inter-bank fees across EU borders, MasterCard was engaging in anti-competitive behaviour.<\/p>\n
Retailers and merchants must pay a fee in order to accept a card payment. Retailers paid such costs by MasterCard fixing the different fees between each EU member states. MasterCard were alleged to have unfairly inflated transaction fees for retailer and merchants which were then passed on to the consumer who had to pay a higher cost for their goods.<\/p>\n