EU Commission Launches Antitrust Probe Into Visa’s Retailer Fees
The European Commission (EC) has opened a preliminary investigation into fees charged by Visa to retailers. This probe follows a recent report indicating that both Visa and Mastercard are under scrutiny for potentially harming competition in the payments market.
Allegations of Anti-Competitive Practices
The EC informed Visa about the investigation on August 30, 2023, stating its interest in examining whether Visa’s fee structure negatively affects retailers. Visa confirmed that it is fully cooperating with the EC to support the ongoing investigation. Mastercard, Visa’s major competitor, also revealed last month that it had received a request from the EC for documents related to a similar probe.
The investigation aims to determine if the current fee model by these card giants may be stifling fair competition, possibly disadvantaging smaller retailers and alternative payment options. Visa and Mastercard’s dominance in the payment industry has long attracted regulatory attention and concerns about a duopoly.
Separate Inquiry Closed
Visa also mentioned a separate EC investigation that was closed on October 1, 2023. This closed investigation focused on the company’s incentive agreements with clients, which had also drawn scrutiny from European regulators.
Ongoing Scrutiny for Visa and Mastercard
Visa and Mastercard hold a significant share of the global card payment market, leading to frequent antitrust probes. As digital payments become increasingly essential, regulators are keen to ensure fair access and competitive pricing for all market participants.
The outcome of this latest EC investigation could have important implications for the future of transaction fees and competition in the European Union’s payment sector.
