The Commission for Protection of Competition has instituted ex officio proceedings for investigation of infringement of competition on the payment card market against MasterCard payment organization, comprised of companies МasterCard Incorporated, 2000 Purchase Street, Purchase New York 10577, USA; MasterCard International Incorporated, 2000 Purchase Street, Purchase New York 10577, USA; and, MasterCard Europe S.p.r.l, Chaussee de Tervuren 198А, В-1410 Waterloo, Belgium (hereinafter, MasterCard).

The Commission has reasonably assumed that MasterCard, as an association of undertakings on the market of the Republic of Serbia, sets fallback interchange fees in an unfair amount, implemented by MasterCard bank members in the territory of the Republic of Serbia, which are several times higher than those implemented in EU countries.

Considering the fact that interchange fees determine a floor for the price which merchants must pay as a service charge for accepting payment cards to banks, the Commission has reasonably assumed that the competition between acquiring banks is in such manner restricted, which are prevented from negotiating the amount of merchant service charge below the interchange fee. That in turn may affect the consumers if merchants pass on such merchant fees to all consumers through higher retail prices, making products or services more expensive irrespective whether the payment is made by using payment cards or in cash, and potentially adversely affecting the competition on the payment card issuing market in the territory of the Republic of Serbia considering the banks’ incentive to offer payment cards that yield the highest interchange fee revenues.

All persons in possession of data, documents or other relevant information which could contribute to the accurate fact-finding in this proceedings are called upon to submit said to the Commission for Protection of Competition to the address 25/IV Savska St., Belgrade.