Credit card
Retailers
can not ask consumers to pay more if they set with a credit card, nor
can they refuse certain loyalty cards with higher fees, ruled the
Competition Tribunal, thus rejects use the Competition Bureau against Visa and Mastercard.The Court asserts that the Board misinterpreted the law when he attacked the cost required Mastercard and Visa merchants. Details of the judgment, however, remain confidential.
"I am disappointed with the Court's decision to reject our request, said John Pecman, Commissioner of Competition, in a statement. However, the Court acknowledged in its decision that it was appropriate to conduct the case before the Court and found that the behavior of Visa and MasterCard had a negative effect on competition. We will carefully study the judgment to determine what happens next. "
The Competition Bureau stated that Visa and MasterCard, which control 90% of the market for credit card rules imposed too severe traders. This concentration would lead to higher costs for small businesses and consumers.
The costs to retailers are among the highest in the world, estimated at $ 5 billion per year, according to the Bureau.
For each transaction by a member consumer, a merchant must pay a fee of between 1.5% and 3%. The Bureau also states that consumers who pay cash at a disadvantage, because the cost of transactions by credit card will be redirected to all consumers.
In a summary of the findings of the court prepared by the Registry, however, it indicates that the interpretation of Article 76 of the Competition Act, relating to the maintenance of price and argued by the Commissioner, was not supported by the jurisprudence.
The court also noted that "the best response to concerns raised by the Commissioner is a regulatory framework" and that the new regulations should be developed "as soon as possible."
"I am disappointed with the Court's decision to reject our request, said John Pecman, Commissioner of Competition, in a statement. However, the Court acknowledged in its decision that it was appropriate to conduct the case before the Court and found that the behavior of Visa and MasterCard had a negative effect on competition. We will carefully study the judgment to determine what happens next. "
The Competition Bureau stated that Visa and MasterCard, which control 90% of the market for credit card rules imposed too severe traders. This concentration would lead to higher costs for small businesses and consumers.
The costs to retailers are among the highest in the world, estimated at $ 5 billion per year, according to the Bureau.
For each transaction by a member consumer, a merchant must pay a fee of between 1.5% and 3%. The Bureau also states that consumers who pay cash at a disadvantage, because the cost of transactions by credit card will be redirected to all consumers.
In a summary of the findings of the court prepared by the Registry, however, it indicates that the interpretation of Article 76 of the Competition Act, relating to the maintenance of price and argued by the Commissioner, was not supported by the jurisprudence.
The court also noted that "the best response to concerns raised by the Commissioner is a regulatory framework" and that the new regulations should be developed "as soon as possible."
0 commentaires: