Russia may crack down on Visa & Mastercard over abuse of dominant market position
Mar 1, 2019 11:20 am
The complaint focused on interchange fees set by the payment systems
Russia’s trade associations have filed a request to the country’s antitrust authority on bringing action against international payment systems Visa and Mastercard over alleged abuse of market power in Russia.
The appeal was brought by a group of trade societies, including the Association of Internet Trade Companies, the Retail Companies Association (ACORT), and the Association of Trading Companies and Manufacturers of Electrical Household and Computer Equipment. The Federal Antimonopoly Service reports this.
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The complaint is reportedly focused on interchange fees set by the payment systems.
An interchange fee is a sum paid by the lender servicing a trade outlet to the lender that issued the card, which is used by clientele of a shop. The extent of payment is commonly defined by transaction amount, and depends on the type of trade outlet and rank of the card. Card issuers usually outweigh the costs of issuing and servicing its cards, customer loyalty programs, and new services at the expense of that commission.
The amount of the payment is also too high and unreasonable in the context of a developed retail market.
Earlier this month, Russian President Vladimir Putin ordered the government and the Central Bank of Russia to adopt measures to decrease commissions charged by banks for noncash transfers.
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