The cardholders of MasterCard in the UK appealed to the Appeal Tribunal for competition issues with the request to charge with payment system £14 billion ($18.7 billion at the interbank rate on 8 September). As MarketWatch writes, the reason for collective action have become too high a fee for cross-border operations within the EU that Master Card was charged for 15 years. This lawsuit is the largest in the history of British jurisprudence.
In 2014, the Luxembourg-based European court of justice [the highest instance Court of the European Union, whose decisions cannot be appealed] was supported by the European Commission’s decision that the size of interchange fees, which operated from 1992 to 2008, was installed in violation of the Antimonopoly legislation of the EU. As a result, prices on all purchases for MasterCard was artificially inflated.
Every time a consumer makes a purchase on the card, the Bank shall credit the Commission to the Bank account of the retailer. As decided by the European Commission, “the payment system, enabling banks to charge higher commissions, thus giving them an incentive to issue their cards than the cards of the competitors,” explains MarketWatch.
Retailers carried substantial costs in connection with interbank commissions charged by MasterCard, which are then passed on to consumers, factoring in the cost of goods and services. £14 billion — the approximate damage assessment conducted by the representative of the interests of the plaintiff, the company Quinn Emmanuel Urquhart & Sullivan LLP, on the basis of publicly available information about online purchases approximately 40 million UK consumers for more than 15 years.
A class action lawsuit against MasterCard, the second since the adoption in 2015 of the new law on consumer protection that allows to recover damages from the company on behalf of all consumers. If the claim is satisfied, they will automatically be able to count on a refund if they refuse it.
As noted by MarketWatch, a spokesman MasterCard [his name the publication does not specify], said that the company disagrees with the lawsuit and intends to defend its rights.
MasterCard is one of the largest international payment systems. It is presented in 210 countries and conducts operations in more than 150 currencies in the world.