The recent loss MasterCard suffered in its appeal to roll back the European Commission ban on cross-border card fees is another indicator that the original payments market business model is undergoing a painful evolution. In both developed and immature markets, the global card networks are being forced to defend themselves against an onslaught of new oversight from regulators influenced by an ever more vocal and organized merchant community. Emerging payment forms are also adding fuel to the fire as they force the industry to rethink traditional relationships and introduce new stakeholders to the value chian.
Last week, MasterCard lost an appeal in the European General Court against a European Commission (EC) ban on its cross-border card fees. MasterCard attempted to appeal a 2007 European Commission ruling that the fees levied on British retailers for processing card payments from customers in other European Union countries were unlawful and anti-competitive.
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