Competition Appeal Tribunal rules that retailers did not pass any of the losses caused by Visa and Mastercard’s payment card fees to consumers
LONDON —The UK Competition Appeal Tribunal today ruled that retailers, and not consumers, suffered the losses arising from Visa and Mastercard’s Multilateral Interchange Fees (MIFs or interchange fees). This is subject to some minor exceptions which do not affect the Scott+Scott Claimant groups. This judgment is an important victory for thousands of merchants and the retail and hospitality industries located across Europe.
The judgment in this case marks a further milestone for Scott+Scott’s clients. Visa and Mastercard argued that the losses caused by payment card fees were passed on by retailers to their customers. The judgment establishes that the loss arising out of Visa and Mastercard’s anti-competitive infringement was suffered by the retailers so the retailers are entitled to damages.
This is a landmark judgment within the field of competition litigation in England and Wales, consolidating the law on pass-on. Commenting on the case, Cian Mansfield, London Managing Partner, Scott+Scott said: “We are delighted that our clients have succeeded in defeating Visa and Mastercard’s opportunistic pass-on defence. This is a great judgment for the European and UK retail and hospitality industries as well as any other merchants who accept payment cards.”
Scott+Scott is deeply committed to obtaining justice for its clients against Visa and Mastercard. Next, the parties prepare for Trial 3 which will consider whether payment card fees can be exempt from liability under competition law, despite amounting to infringements.