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BRUSSELS - EU Competition Commissioner Neelie Kroes said today her staff would take a close look at some of Visa's business practices next year, when an antitrust exemption for the credit card company runs out.
The European Commission investigated Visa regarding interchange fees -- paid by merchant banks to card-issuing banks for over-the-counter payments -- and struck an agreement in 2002, but that runs out at the end of December. The agreement has given it an exemption from EU antitrust action.
"I will say that when our exemption decision on Visa expires at the end of this year, we will look again at the effect of their interchange fees on competition," Kroes said in remarks prepared for delivery at the London School of Economics.
Others in the Commission have made clear its intent to scrutinise Visa, and Kroes' remarks underscore that she backs a new investigation.
Kroes has conducted an across-the-board review of the financial industry, focusing on payment cards.
The Commission is already looking into MasterCard's setting of interchange fees, which it said may break competition law. It conducted a closed hearing on MasterCard last year.
Britain's Office of Fair Trading last year closed an investigation of MasterCard's interchange fees without filing charges. It has since opened a new probe.
- REUTERS
