On September 26, 2011, the European Commission (Commission) announced that it has opened a competition law investigation into the standardisation process for payments over the internet (e-payments) undertaken by the European Payments Council (EPC). The Commission will examine the standardisation process to ensure that competition is not unduly restricted, for example, through the exclusion of new entrants and payment providers who are not controlled by a bank. The Commission has raised a concern that such restrictions may infringe the EU competition law prohibitions on restrictive agreements contained in Article 101 of the Treaty on the Functioning of the EU (TFEU).
The main concern of the investigation is that merchants and end- consumers may end up paying higher prices for e-payments if competitors to bank-controlled entities are excluded from the market.
Status of Investigation So Far
The Commission is investigating whether a group of banks, reported to include Deutsche Bank, HSBC, Barclays and Spain’s BBVA, is restricting or excluding new players from entering or expanding on the EU e-payments sector. The investigation has been prompted by a complainant.
Please see full Alert below for further information.
Please see full publication below for more information.
