Speaking before the EP’s Economic and Monetary Affairs Committee, Competition Commissioner Neelie Kroes said her services hope to complete an inquiry into MasterCard and rule on the credit card group's interchange fee payments network by the end of the year. She said that her services will also look at Visa.
Responding to the question of Irish MEP Eoin Ryan she said that the inquiry found a number of issues that are worrying, particular with regard to costs and hidden costs for the customer. Kroes is concerned that consumers are paying with debit cards or cash and subsidise consumers paying with credit cards.
She reiterated that she is "concerned" by the effect of interchange fees on competition and that scrutiny of the payment cards sector remains a "priority for action". The Commission banking and payment card sector inquiry said that while it would not abolish interchange fees, it would continue to assess the legality of current fee levels.
Responding to questions from MEPs on the “bail out” of banks, namely IKB and Northern Rock, during the recent financial tourmoils she stated that state aid is allowed ‘under certain circumstances’. However, it is too early to judge whether these ere justified.
© Graham Bishop
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