EU Intensifies Probe Into Visa and Mastercard Fees
Brussel, zondag, 25 mei 2025.
The European competition authorities have intensified their investigation into Visa and Mastercard. Recently, new questionnaires have been issued to market participants, targeting the compelling fees imposed by these companies. This comes less than ten years after previous investigations that resulted in hefty fines. There are concerns that Visa and Mastercard may be abusing their dominant market position. The investigation could lead to accusations of unfair trading practices. The European Commission is expressly seeking feedback from both terminal providers and payment companies to gain insight into the structure and transparency of the fees. This could have significant implications for how payment networks operate in Europe. The investigation aims to promote competition and potentially introduce new regulations. Responses to the questions must be submitted by 2 June.
Focus on Fees and Market Position
The European Commission’s investigation into Visa and Mastercard focuses on the ‘scheme fees’ imposed on financial institutions for using their payment networks. These fees are controversial and have previously caused a stir. Visa and Mastercard together process about two-thirds of card payments in the eurozone and are suspected of abusing their dominant market position. The Commission seeks to evaluate whether the fee structure is fair and if there is room for more competition [1][3][5].
Questionnaire Aims to Understand Effectiveness
Regulators have distributed new questionnaires to market participants to understand the workings of the fee structure since 2017. The focus is on the introduction of new fees and services, the obligatory nature of the payments, and the communication about changes. The European Commission wants to understand to what extent these fees are communicated transparently and fairly to the involved parties. The deadline for responding to the questionnaires is 2 June, after which the Commission will consider possible next steps [2][4].
Social Impact and Company Responses
Both Visa and Mastercard have responded to the investigation. Mastercard emphasises its priority for customer-friendliness and payment security. Visa states that their fees reflect the high safety standards and operational reliability they offer to financial institutions and consumers in Europe. Despite these statements, the question remains whether the fees restrict competition and if measures are needed to ensure fair trading practices. How the European Commission will approach these matters remains to be seen [1][5].