EU opens antitrust proceedings against Visa Europe

By Paul Taylor

BRUSSELS (Reuters) - The European Commission said on Wednesday it had opened antitrust proceedings against Visa Europe Ltd over the interchange fees the company charges for cross-border consumer payment card transactions.

A statement by the European Union executive said Visa Europe, owned by 4,600 banks that have issued 348 million cards, was suspected of breaching EU rules "which forbid restrictive business practices such as price fixing."

Visa Europe said in January it was hoping for a deal with the EU executive to keep its interchange fee on transactions despite a Commission competition ruling in December against rival MasterCard's (MA.N: Quote, Profile, Research) interchange fee.

The Commission, which has broad powers to regulate competition in the 27-nation EU, said the initiation of proceedings did not imply it had proof of any infringement, and there was no strict deadline to complete the inquiry.

Even if it was determined that Visa had used restrictive business practices, the company might be able to show there was sufficient benefit for consumers, Commission competition spokesman Jonathan Todd told a news conference.

"We're a very, very long way from deciding whether there is a problem. With any kind of antitrust violation, the Commission can impose a fine. It can also impose remedies, or both. But for the moment it would be premature to speculate," he said.

COST TO CONSUMERS

A Visa Europe spokesman said the Commission's announcement was an expected standard procedural step and the company would continue its dialogue with the EU regulator.