The reason was the abuse of dominant market position.
The European Commission fined the MasterCard payment system 570,556,000 euros for violating EU antitrust rules. As the commission’s investigation showed, retailers overpaid for banking services due to the rules of the system. Because of this, prices have increased for retailers and consumers.
The report of the European Commission notes that Mastercard is the second largest payment system in the European Economic Area.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]By blocking sellers’ ability to search for the best deals of banks from other EU countries, Mastercard rules artificially inflated the cost of card payments, and also caused damage to consumers and businesses.[/perfectpullquote]
As the European Commission found out, Mastercard obliged the banks servicing the deal to charge interbank transfer fees at a price that is set for the bank in the country where the retailer is located. As a result, retailers had to include a commission in the cost of goods, including for customers who do not use MasterCard.