Mastercard charged by EU competition regulators

Mastercard has been charged by the European Union's competition regulator for over-charging non-European cardholders for card payments in Europe and preventing cross-border competition.

If the charges are confirmed, the EU could fine MasterCard up to 10% of its global annual turnover.

The European Commission said the credit and debit card company had artificially hiked the minimum cost of card payments within the EU.

EC competition chief Margrethe Vestager also criticised MasterCard’s rules on cross-border transactions within the region that prevented retailers in one EU country from benefitting from lower card fees in another country, thus restricting competition between banks.

“We have concerns both in relation to the rules MasterCard applies to cross-border transactions within the EU, as well as the fees charged to retailers for receiving payments made with cards issued outside Europe,” the EU’s antitrust chief Margrethe Vestager said in a statement.

The EC said it had sent a statement of objections to the company related to two issues, with Mastercard given an opportunity to respond to the charges.

The EC had launched a previous antitrust charge against Mastercard in 2009 over its cross-border interchange fees levied on retailers' credit and debit card transactions.