Visa and Mastercard Face £5bn UK Lawsuit Over Card Fees
Two law firms have filed a Competition Appeal Tribunal application seeking compensation for UK businesses allegedly overcharged on card payments since 2020.
Visa and Mastercard face a potential £5 billion group lawsuit in the United Kingdom over claims that the payment giants stifled competition and charged businesses inflated fees on customer card transactions, according to a new legal filing.
Law firms Harcus Parker and Hausfeld have submitted an application to the Competition Appeal Tribunal seeking to advance a group claim on behalf of UK companies. The firms allege that businesses have been systematically overcharged on card payment processing fees since October 2020.
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The tribunal application marks an early but significant step toward what could become one of the largest commercial damages actions against payment networks in British legal history. Group claims of this nature allow multiple affected businesses to consolidate grievances into a single coordinated proceeding, potentially amplifying pressure on the defendants.
Visa and Mastercard together dominate the card payments infrastructure used by retailers and service providers across the UK. Critics have long argued that their fee structures lack competitive discipline given the duopoly's market position, a concern that regulators in both the UK and European Union have examined in various forms over the years.
No court ruling has been issued, and the application must first clear procedural hurdles at the Competition Appeal Tribunal before any full claim can proceed. Continue reading at Business | The Guardian.
