A group of trade associations representing European retailers reportedly asked the European Commission to take action against Mastercard and Visa under European Union antitrust rules, alleging that the companies charge high fees and don’t provide transparency on those fees.
In a letter dated Tuesday (May 13) and addressed to the commission’s antitrust chief, financial services commissioner and economy chief, the associations also called for price controls on interchange fees, transparency and non-discriminatory obligations for International Card Schemes (ICSs), and a tool for regulators to scrutinize ICSs’ actions, Reuters reported Wednesday (May 14), citing a copy of the letter.
“International Card Schemes (ICS) have been able to increase their fees without competitive challenge or regulatory scrutiny,” the letter said, per the report. “They have also rendered their system of fees and rules so complex and opaque that players are unable to understand, let alone challenge, what they are paying for and why.”
Reached by PYMNTS, a Mastercard spokesperson declined to comment on the report, saying the company had not seen or received the letter.
A Visa spokesperson said the firm’s fees reflect the value of its services, adding: “This includes extremely high levels of security and fraud prevention, near-perfect operational resilience and reliability, and a wide range of consumer protections and high-quality, innovative products and services that serve consumer and merchant needs.”
According to the report, the letter was signed by five lobbying groups: EuroCommerce, Ecommerce Europe, Independent Retail Europe, the European Association of Corporate Treasurers and the European Digital Payments Industry Alliance.
The associations did not immediately reply to PYMNTS’ request for comment.
Mastercard and Visa process about two-thirds of card payments in the eurozone, and retailers’ complaints in the past have led the EU to investigate alternatives to American payment providers, the report said.
It was reported in November that the European Commission launched a probe into whether Mastercard and Visa’s fees are hurting merchants. An antitrust case brought by EU regulators could lead to fines of up to 10% of a company’s global earnings.
