Visa has just closed a chapter of its antitrust woes in the European Union.
On February 26, 2014, the European Commission announced that it had rendered legally binding the commitments offered by Visa Europe to cap its yearly weighted average Multilateral Interchange Fees (MIFs) for consumer credit card transactions at a level of 0.3% of the value of the transaction. The cap will apply with immediate effect to cross-border credit transactions within the EEA (i.e., where the issuer and the acquirer are in different EEA countries) and with a two-year delay to domestic credit card transactions in certain EEA countries.
Visa offered these commitments to resolve proceedings opened by the European Commission in 2008 with respect to both debit and credit card cards. In 2010, the Commission accepted Visa’s commitment to cap its debit card MIFs at 0.20% of transaction value. However the investigation continued with respect to credit card transactions. The Commission issued a supplementary Statement of Objections in July 2012, setting forth its continuing concerns with Visa’s practices in the credit card space and, in particular, the level of its interchange fees. click here for more »