Visa, Mastercard fees hit by new round of EU antitrust scrutiny

Visa Inc. and Mastercard Inc. fees are under fresh scrutiny from European Union antitrust enforcers, less than a decade after a series of probes ended with hefty fines and an agreement to cut some of their controversial levies.

European Commission regulators last week circulated a new series of questions to market participants on “scheme fees” they impose on the financial institutions that provide card-payment services to retailers using Visa and Mastercard networks, said people familiar with the matter.

The questionnaires homed in on whether retailers have a choice of whether to accept Visa and Mastercard payments, whether merchants are getting value for money from the fees eventually passed on to them, and how transparent the charges are, said the people, who spoke on condition of anonymity.

While at an early stage, it’s possible EU’s competition watchdog could move toward opening of a formal probe, ramping up the risk of heavy fines of as much as 10% of annual revenue if firms are found to have abused their market dominance.