The Turkish Competition Board (RK) stated on Thursday it had determined to open investigations into Türkiye-related companies of Mastercard and Visa after a preliminary probe within the space of low cost and incentive schemes.
It stated it determined to open investigations into varied models of the 2 firms, together with Mastercard Europe SA and Visa Europe Limited.
According to the announcement on the web site of the competitors authority, the preliminary investigation relating to allegations that Mastercard and Visa, world cost system service suppliers, violated the Law on the Protection of Competition within the markets for scheme and digital pockets companies in Türkiye by varied exclusionary practices, has been concluded.
As a end result, an investigation has been initiated into the financial entities comprising Mastercard Europe SA, Mastercard Europe SA Istanbul Liaison Office and Masterpass Technology Services Inc., that are underneath the management of Mastercard Incorporated, in addition to Visa Europe Limited, Visa Europe Services LLC and Visa Europe Services LLC Türkiye Representation, that are underneath the management of Visa Inc.
The investigation goals to find out whether or not these entities violated the regulation by varied exclusionary actions within the scheme and digital pockets companies markets the place they function.
The authority will study whether or not the low cost/incentive programs individually developed by Mastercard and Visa within the scheme companies market, the place they maintain the vast majority of financial institution, credit score and pay as you go playing cards issued in Türkiye, may result in de facto exclusivity of their vertical relationships with card-issuing companies, thus risking the foreclosures of the market to opponents both independently or cumulatively.
The investigation will even assess the potential anti-competitive results of Visa’s non-compete obligations imposed on its buying entities within the digital pockets companies market, which stop them from acquiring companies from rival suppliers. Additionally, it would examine whether or not Mastercard has abused its dominant place within the digital pockets companies market by practices similar to predatory pricing and different actions that hinder the operations of opponents.
Furthermore, the initiation of the investigation doesn’t indicate that the entities or associations underneath investigation have violated the regulation or face sanctions.
Earlier this yr, the U.S. Department of Justice (DOJ) filed a lawsuit accusing Visa of violating antitrust regulation by suppressing competitors by threatening retailers with excessive charges and paying off potential rivals.
Visa, one of many world’s largest cost networks, processes greater than 60% of debit transactions within the U.S., bringing it $7 billion annually in charges collected when transactions are routed over its community, the Justice Department stated. The firm protects that dominance by agreements with card issuers, retailers and opponents, prosecutors alleged.
Visa and Mastercard proceed to dominate the cost panorama typically globally and are thought of primarily as a duopoly.
The considerations over Visa and Mastercard practices out there they’re working in may stem from a common rise in using credit score and debit playing cards worldwide, particularly following the coronavirus pandemic.
Source: www.dailysabah.com