Mastercard and Consumer Advocate Agree to Settle British Swipe Fee Lawsuit

Core Viewpoint - Mastercard has reached an agreement in principle to settle a long-standing British lawsuit regarding card fees, which is subject to approval by the U.K.'s Competition Appeal Tribunal (CAT) [1][2]. Group 1: Lawsuit Background - The lawsuit was initiated in 2016 by Walter Merricks, a former Financial Ombudsman, with support from law firm Quinn Emanuel, alleging anticompetitive card fees [2]. - The suit accused Mastercard of overcharging nearly 60 million British residents over 16 years through exorbitant interchange fees, which retailers pay to credit card companies [3]. Group 2: Settlement Details - Merricks expressed satisfaction with the settlement, believing it will provide meaningful compensation to class members who participate in the distribution of damages [2]. - Mastercard's spokesperson indicated the company is pleased to have reached an agreement to resolve the case [2]. Group 3: Legal Context - The case became the first major lawsuit to proceed under the Consumer Rights Act 2015, which penalizes anti-competitive behavior, following a European Commission ruling in 2007 that found Mastercard's interchange fees in breach of competition law [4]. Group 4: Industry Implications - Interchange fees have also faced scrutiny in the United States, with critics arguing they burden consumers and businesses, leading to higher prices for goods and services [5]. - Executives from Visa and Mastercard defended their practices, asserting that their networks provide value through competitive payments landscapes and technical innovations [5].