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| Version 1 | Version 2 |
|---|---|
| EU says Mastercard overcharges consumers and retailers | EU says Mastercard overcharges consumers and retailers |
| (about 1 hour later) | |
| European Union officials have accused Mastercard of overcharging consumers with the fees the company charges. | |
| "We currently suspect Mastercard is artificially raising the costs of card payments," said the EU statement. | "We currently suspect Mastercard is artificially raising the costs of card payments," said the EU statement. |
| Those fees harm consumers and retailers in the EU, competition commissioner Margrethe Vestager said. | Those fees harm consumers and retailers in the EU, competition commissioner Margrethe Vestager said. |
| The credit card company said it was "working with the European Commission on the issue" and was preparing a formal response. | The credit card company said it was "working with the European Commission on the issue" and was preparing a formal response. |
| "Throughout this procedure we have kept the needs of both consumers and merchants in mind," Mastercard said. | "Throughout this procedure we have kept the needs of both consumers and merchants in mind," Mastercard said. |
| The EU is focusing on what is known as 'interchange fees' - the fees retailers pay banks to process card payments. | The EU is focusing on what is known as 'interchange fees' - the fees retailers pay banks to process card payments. |
| Officials say they are concerned that Mastercard violates competition rules by requiring retailers to pay artificially inflated fees to process credit card transactions. | |
| They say this practice leads to higher prices for retailers in the EU, which they then pass on to consumers. | |
| Officials also cite Mastercard's "inter-regional interchange fees", which tourists incur when they are travelling abroad. | |
| The charges from the EU are part of a long-running investigation. | |
| The maximum fine that the EU can impose for antitrust infringements is 10% of the company's annual sales, according to the EU. | |
| A separate investigation into Visa's interchange fees is also being carried out by the EU. | A separate investigation into Visa's interchange fees is also being carried out by the EU. |