Memo: Antitrust: Commission notes MasterCard’s decision to temporarily repeal its cross-border Multilateral Interchange Fees within the EEA

The European Commission noted that MasterCard has temporarily repealed with effect from 21st June its multilateral interchange fees (MIF) for cross-border payment card transactions with MasterCard and Maestro branded debit and consumer credit cards in the European Economic Area (EEA). The MIF is a charge levied on each payment at a retail outlet when the payment is processed. The Commission decided in December 2007 that the MIF that MasterCard charged at the time did not comply with EC Treaty rules on restrictive business practices (Article 81), but did not require MasterCard to repeal the MIF system altogether. Instead, the decision gave MasterCard six months (until 21 June 2008) to comply with the antitrust rules. Since the adoption of the decision MasterCard has failed to come forward with an alternative MIF that could be justified. Although MasterCard has now provisionally repealed its MIF, the Commission understands that MasterCard will continue to look for evidence to demonstrate the benefits of a MIF. The Commission will continue to work with MasterCard in analysing any evidence and data that it provides.