Brussels (dpa) - The European Union opened an investigation
Tuesday to check whether MasterCard was breaching competition rules
because of fees charged for interbank transactions, the bloc's
executive said.
The interbank fees are "generally passed on to the merchants,"
increasing costs for shopkeepers and ultimately harming EU customers,
the European Commission said.
In 2007, the commission banned some of MasterCard's interbank fees
on transactions being carried out within the European Economic Area.
It launched a similar investigation against Visa in July.
MasterCard is now being investigated for interbank fees applied
when customers from outside the area, such as visitors from the
United States, make purchases within the bloc.
In addition, the commission would look into MasterCard rules that
prevent merchants from accessing better conditions from banks located
elsewhere in the European single market as well as practices such as
obliging shopkeepers to accept all types of MasterCard products.
"These fees and practices may restrict competition," the EU's
executive said.
US-based MasterCard said it plans to "fully cooperate" with the
commission.
"As a global electronic payments company, MasterCard always aims
to balance the interests of both consumers and retailers to ensure
that each party pays its fair share of the costs for the benefits it
receives," it said.
European consumers and businesses were making more than 40 per
cent of their non-cash payments by card, the commission said, adding
that payment cards were of crucial importance for cross-border and
internet purchases.
"It's essential to prevent one or a handful of players dominating
the credit and debit card market," said Monique Goyens, the director
general of the European Consumer Organization BEUC. "Consumers pay
the bill for such unfair practices."
"Interbank fees are of particular concern as they result in
higher prices for all shoppers - including those consumers who pay
with cash or do not even own a card," she said. "All ... are hit by a
scheme which ultimately rewards the card company and issuing bank."
The commission said it planned to propose new rules for interbank
fees for card payments in coming months, to "ensure legal certainty
and a durable level playing field across the EU for all providers."
Companies found to be in breach of EU competition rules may be
charged penalties of up to 10 per cent of annual turnover.
