Closed MasterCard Hearing to Begin Today

by Patrick Lunsford, CollectionIndustry.com

The European Commission, the competition watchdog unit of the European Union, begins its antitrust inquiry into the business practices of MasterCard today. At issue are the fees the credit card company charges to merchants that accept its cards.

The Commission alleges that MasterCard restricted competition by setting minimum prices retailers must pay for inclusion in its payment network. The Commission will open two days of closed hearings starting on Tuesday.

EU Internal Market Commissioner Charlie McCreevy said he and his counterpart at the Commission, Neelie Kroes, might team up to take tough, sector-wide action. Kroes said this year that the payment industry needed review because practices in the credit card industry pushed up payment card costs for consumers and businesses.