Reuters
Published Dec 11, 2020 05:40AM ET
Updated Dec 11, 2020 06:01AM ET
By Kirstin Ridley
LONDON (Reuters) - A 14 billion pound ($18.5 billion) class action against Mastercard (NYSE:MA) for allegedly overcharging more than 46 million people in Britain over a 15-year period was on Friday given the green light by the UK Supreme Court.
The judgment dismisses an appeal by Mastercard, sets the scene for Britain's first mass consumer claim brought under a new legal regime and offers guidance for a string of other class actions that have been stalled pending this ruling.
The vast, complex case -- brought after Mastercard lost a drawn-out appeal against a 2007 European Commission ruling that its fees were anti-competitive -- could entitle adults in Britain to 300 pounds ($400) each if it is successful.
"Mastercard has been a sustained competition law breaker, imposing excessive card transaction charges over a prolonged period in a way it must have known would impose an invisible tax on UK consumers," said Walter Merricks, who is leading the class action.
The lawyer, who once led the Financial Ombudsman Service, which handles consumer disputes with banks, added that the prices of "everything we all bought from 1992 to 2008 were higher than they should have been".
Mastercard said it fundamentally disagreed with a claim that it said was being driven by "hit and hope" U.S. lawyers.
"Mastercard will be asking the Competition Appeal Tribunal (which will oversee the case) to avert the serious risk of the new collective action regime going down the wrong path with a case which is fundamentally flawed," it said in a statement. ($1 = 0.7563 pounds)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.