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MasterCard Fined $648 Million for High EU Card Fees (bloomberg.com)
MasterCard was fined 570.6 million euros ($648 million) by the European Union for imposing rules that regulators said may have artificially raised the costs of card payments in the region. From a report: The European Commission said MasterCard unfairly prevented retailers from seeking cheaper rates from banks outside the EU country where they are based. MasterCard's curbs on cross-border acquiring ended when the EU introduced credit card legislation in 2015. The EU's probe started in 2013 and escalated with a statement of objections two years later. MasterCard last month set aside $650 million to cover the fine, less than a potential 1 billion euros it flagged as a possibility in 2017. The company got a 10 percent fine reduction for cooperating with the EU, regulators said.
I can't believe a credit card company would have high card fees. At least that sounds like an EU problem. They never do that kind of stuff in the US.
Ninjas don't carry tic tacs
Who gets the money?
People got ripped off, yet I have the uncanny feeling the fine will just make our fat and stupid EU politicians even fatter and more stupid. Nothing for the victims obviously.
The EU found another ATM to draw money from.
Ten percent penalty reduction for cooperating? Sounds to me like never cooperating is a good gamble. Heck, delay something for four years and inflation will pay you money all by itself.
Why don't the bought-off crooks we call politicians in this country ever... Just answered my own outrage!!
This is not news for nerds, nor is it stuff that matters. Slashdot has become far worse since whipslash purchased it.
The credit card market is an oligopoly and therefore must be regulated. The EU is right to force Mastercard into lowering its fees.
All too often the "business friendly" regulatory stance is "we will punish your sins with a slap on the wrist, but we'll never make you wish you hadn't".
Depending on how much Mastercard pocketed from this initiative while the getting was good, this could actually have tipped into "we almost wish we hadn't" territory.
Most corporate fines usually wind up in the neighbourhood of Tony Soprano's vig: mere cost of doing business, everybody wins.
By erecting a border wall, the US will save enough money to reduce typical student loan debt by 40% over the next 5 years.
Quick!! Erect that wall.
Why does no one ever go to jail over these things? Clearly there were humans behind this. Why don't these companies lose their charters? Wow- they were fined. They'll just raise the fees on everyone else to get the $s back. No big deal. I know I would go to jail if I'd run this kind of scam personally. Bullshit. What about giving the money back to the people they bilked?
They can try but they never pay.
Corporatism != Free Market
right through to the customers somehow.
;)
Just my 2 cents
Who do you think, The EU government gets the money, fines and things like this are just a normal part of the government revenue stream. So they can fund their , cough! cough! services.
;)
Just my 2 cents
So, you'd rather MC just keep the money? Cause that's the alternative. This sounds a lot like you're complaining about a half-solution instead of celebrating a half-solution.
Your ad here. Ask me how!
More EU bureaucrats demanding more money from more big brands.
Who are the EU nations spending all this money on?
Domestic spying is now "Benign Information Gathering"
We started that shit.
We, as a country, only exist because we were a tax haven to hide money from the kings.
We became a puppet state of corporations, due to our tiny meaningless government.
Now both our politicians and the corporations wanted more power.
The corporations wanted to override the sovereignity of nations and merge state and industry into one.
Which is exactly how Mussolini, the "inventor" of fascism, defined fascism back then.
So they created the BeNeLux, expanded it into the European Community, then the EU, and then TTIP/CETA+NAFTA. (Which, counter to public view, actually passed, apart from a small token bit that the Gauls demanded.)
So calling people who oppose the EU Nazis, is rather silly. ... ad hominem is not a valid argument against an argument, unless you have a Nazi-like mindset. ;))
And even if,
Keep this story in mind the next time you hear someone talking about how going " cashless " will be such a wonderful thing.
MasterCard, Visa, PayPal, et. al. can set whatever rates and fees they want with little or no oversight / regulation today.
Those fees are then passed onto the consumer.
( They can also cherry-pick what business and merchandise types are allowed through their systems )
When their CEO decides he / she doesn't like:
Adult-Industries ( porn )
Guns
Women's Health Clinics
$pick_your_favorite_controversial_topic
They can ( and, in the case of PayPal, some do ) simply ban those transaction types and there isn't a damn thing you can do about it.
For now, at least, cash is still an option.
The credit card companies got laws passed making it illegal for merchants to pass credit card fees on to customers. That means the person who decides which card to use is insulated from the cost associated with using that card, completely handcuffing market forces which would drive credit card processing fees down.
Get rid of those laws (regulations), and the credit card processors would be forced to compete head-to-head on price, driving their fees down.
Credit Cards as payment for fines?
Whiney bitch-asses who hate the human rights and customer protection laws in the EU make all sorts of bollocks up about how ebil the EU is.