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13 June 2008

MasterCard temporarily repeals cross-border MIF


MasterCard has temporarily repealed its multilateral interchange fees for cross-border payment card transactions. MasterCard failed to come forward with an alternative MIF having risked daily penalty payments.

MasterCard has temporarily repealed its multilateral interchange fees for cross-border payment card transactions with MasterCard and Maestro branded debit and consumer credit cards with effect from 21 June 2008.

 

The Commission decided in December last year that the MIF that MasterCard charged at the time did not comply with EC Treaty rules on restrictive business practices (Article 81), but did not require MasterCard to repeal the MIF system altogether.

 

The decision gave MasterCard six months - until 21 June 2008 - to comply with the anti-trust rules. MasterCard has failed to come forward with an alternative MIF that meets the exemption criteria. This failure would have meant that MasterCard risked daily penalty payments.

 

The Commission understands that MasterCard will continue to look for evidence to demonstrate the benefits of a MIF. The Commission will continue to work with MasterCard in analysing any evidence and data that it provides.

 

“The Commission will continue to be open to assess any new proposals from MasterCard concerning systems", Commissioner Neelie Kroes said.

 

Press release



© European Commission


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