The Eropean Union today sent a warning to major credit card companies that it might take action to increase competition in the industry. Charlie McCreevy, Internal Market Commissioner, EU said that he was studying the industry that has only two visibilities - Visa and MasterCard, both of which are US firms. He said the EU had powers to take action if it finds competition abuse taking place.
This warning follows the EU probe into competition abuse by MasterCard. A closed hearing of EU regulators today will study allegations that MasterCard has been restricting competition by the way of setting minimum fees retailers must pay the firm for transactions made using its cards.
A MasterCard official declined to comment on the case.
It is happening not just in the EU, but all over the world where these two giants of the credit card industry have indulged in monopolistic practices to stifle competition - be it in Asia or America or Europe. At least, in the US, there are other major players too like American Express. But when it comes to worldwide business, there seems to be only two players - Visa and MasterCard.
News: BBCNews.com
