EU Expands Visa, Mastercard Fee Probe Covering Two-Thirds Of Eurozone Payments

European Union antitrust regulators have expanded their investigation into Visa and Mastercard's fee structures, distributing questionnaires to terminal providers and payment companies as scrutiny intensifies over potential anti-competitive practices by the two dominant card processors. The probe, which began in September following merchant complaints, now encompasses a broader examination of how the companies leverage their market position across the eurozone's payment ecosystem.

What to Know:

• EU regulators are investigating Visa and Mastercard's fee structures after complaints from merchants and payment companies about anti-competitive practices
• The two companies process approximately two-thirds of all card payments in the eurozone, giving them significant market dominance
• A new questionnaire sent to terminal providers and payment companies could lead to formal charges if regulators find evidence of market abuse

Investigation Targets Market Dominance Claims

The European Commission's latest questionnaire represents a significant escalation in the regulatory examination of the payment giants' business practices. Officials are seeking detailed information about fee structures implemented between 2017 and 2024, including the introduction of new charges and modifications to existing services.

The inquiry specifically targets how Visa and Mastercard communicate fee changes to payment service providers.

Regulators want to understand which scheme and processing services are mandatory for payment companies. They are examining whether the two processors provide sufficient clarity about fee structures and adequate notice periods for changes. The questionnaire also seeks information about complaint resolution processes, asking respondents about grievances filed over the past seven years and processing timelines.

The investigation's scope reflects growing concern about the companies' ability to impose fees across their networks. Industry sources suggest the Commission may be building a case that Visa and Mastercard hold dominant market positions and potentially abuse that dominance through their pricing strategies.

Companies Defend Fee Structures

Both payment processors have defended their fee structures as reflective of the value they provide to the financial ecosystem. Mastercard emphasized its commitment to offering consumers and businesses secure, convenient payment options that are "hassle-free and worry-free." The company's spokesperson highlighted the choice and flexibility their services provide to users across different payment scenarios.

Visa took a similar defensive stance, arguing that its fees correspond to the substantial value delivered to financial institutions, merchants, and consumers throughout Europe. The company specifically cited its "extremely high levels of security and fraud prevention" and "near-perfect operational resilience and reliability" as justifications for its fee structure.

The companies' responses underscore the challenge they face in justifying their pricing models to regulators. Their combined processing of roughly two-thirds of eurozone card payments gives them substantial leverage in fee negotiations with payment service providers and merchants.

Regulatory Timeline and Next Steps

The Commission has set a deadline of June 2 for responses to the latest questionnaire. This timeline suggests regulators are moving deliberately but steadily toward potential enforcement action. The investigation's expansion from retailers and merchants to include terminal providers and payment companies indicates a comprehensive review of the market dynamics.

Industry observers note that the questionnaire's focus on mandatory services and fee transparency could signal the Commission's intent to establish formal dominance findings. Such findings would be necessary for any subsequent abuse of dominance charges under EU competition law.

The probe represents part of broader European regulatory scrutiny of major technology and financial services companies. Payment processing has become increasingly important to European commerce, making fee structures a critical concern for regulators monitoring competitive practices.

Closing Thoughts

The European Commission's expanded investigation into Visa and Mastercard's fee structures reflects growing regulatory concern about market concentration in payment processing. With responses due by early June, the probe could lead to significant changes in how the dominant processors structure and communicate their fees across the eurozone.