Court Rules in Favor of Asda, Sainsbury’s, Morrisons, and Argos
- Court of Appeals rules in favor of UK retailers against Mastercard and Visa
- Judge Terence Etherton finds card merchants’ system as an ‘unlawful restriction of competition’
- Asda, Sainsbury’s, Morrisons, and Argos win the case
- Court does not determine a lawful rate for interchange fees
- Case to be sent to Competition Appeal Tribunal for further consideration
The Court of Appeals has ruled in favor of four UK retailers who claimed that card fees charged by Mastercard and Visa when customers make a transaction were too high. Judge Terence Etherton agreed with Asda, Sainsbury’s, Morrisons, and Argos and found that the card merchants’ system was an ‘unlawful restriction of competition infringing.’ However, it ruled that the fees were ‘necessary’ as argued by the card merchants. The Court of Appeal did not rule what level of interchange fees were ‘lawful’, so that aspect of the case will be sent to the Competition and Appeals Tribunal for consideration. There, a ‘lawful’ rate is expected to be determined. Kate Pollock, co-head of competition litigation at Stewarts, the law firm which represented Asda, Argos, and Morrisons, said: ‘Our clients and we are delighted that the Court of Appeal has unequivocally recognised that the fixing of interchange fees by MasterCard and its network members over many years was and is an unlawful infringement of competition law. Our clients now look forward to a swift and final resolution of this matter.’ Retail Sector has approached Visa and Mastercard for comment.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the Court of Appeals ruling in favor of UK retailers against Mastercard and Visa, quotes from a legal expert, and explains that the determination of lawful fees will be handled by the Competition and Appeals Tribunal. It does not contain digressions or irrelevant details, nor does it include misleading information or personal opinions presented as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about the Court of Appeals ruling in favor of UK retailers against Mastercard and Visa regarding high card fees. It also includes a statement from one of the law firms involved in the case. However, it could benefit from more analysis or context on the potential impact of this decision on competition and consumer behavior.
Financial Relevance: Yes
Financial Markets Impacted: Payment processing industry, Mastercard and Visa
Financial Rating Justification: The article discusses a legal case involving payment processing fees charged by Mastercard and Visa, which can impact the financial markets as it may lead to changes in their pricing structure and competition within the industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.
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