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MasterCard considers appeal of GVH fine

Following the Hungarian Competition Authority’s (GVH) decision yesterday to issue MasterCard Europe SA a HUF 88 million fine, the company is considering appealing the resolution, Hungarian news agency MTI reported late yesterday.

GVH announced yesterday that it had fined MasterCard on charges of abusing its market position, saying that the company set interbank commissions in 2011-2013 in a way that would squeeze out competitors. GVH added that MasterCard set its commissions with the knowledge of a cap placed on peer VISAʼs interbank commissions by the European Commission from February 2011, thus further reducing already weakened competition on the market.

GVH said yesterday that since MasterCard was not a repeat offender, the authority considered it a mitigating factor in determining the fine, MTI reported.

Last June, the Interchange Fees Regulation was introduced in the European Union, MTI noted, adding that the regulation imposes a cap on interchange fees for the most frequently used credit cards.