Yorkshire law firm to appeal £450m Mastercard judgement

A Yorkshire law firm that represented major retailers including Asda, Debenhams and Morrisons against Mastercard in a row over fees has said it will appeal a judgement in favour of the payments giant.

Earlier this week a UK commercial court ruled against claims from the retailers, which were defended by Leeds-based Stewarts Law, that they were being overcharged for interchange payments which are charged to shops by credit and debit card issuers.

Judge Popplewell J. ruled earlier this week that the charges were neither unlawful or anti-competitive in a 137-page report. Collectively the retailers  said they had paid a total of £437m in the way of ‘multilateral interchange fees’.

Other retailers in the group include the Arcadia Group, which counts Topshop among its brands, B&Q, Argos, Iceland, Debenhams, New Look, and the Comet Group in liquidation.

Mastercard had previously lost a ruling in 2014 by the European Commission, which said it restricted competition and inflated charges.

In 2015 the payments company was accused of “artificially raising the cost” of card payments, which interchange fees varying extensively throughout member states and underwent an antitrust probe.

A statement from Stewarts law said: “”The judgment of the Commercial Court is disappointing and, in view of the fact that the European Commission, the General Court and the Court of Justice of the European Union have all previously unanimously ruled that interchange fees are anti-competitive, somewhat surprising. We are reviewing the findings in detail with our clients and will be seeking leave to appeal.”

A statement from Mastercard said: “Mastercard is grateful that the Court has found in its favour with respect to the significant issues being heard in this case.

“The Court recognised the immense benefits that retailers derive from our payment system. In rejecting the retailers’ claims, it found that Mastercard’s interchange fees did not restrict competition and were necessary for the functioning of its payment system.

“In addition, the Court carefully analysed Mastercard’s interchange rates for the entire period of the claim and found that those rates were significantly below the lawful level of interchange that could have been charged to the retailers for those benefits.

“Mastercard views this decision as a confirmation of the legitimacy and importance of interchange in our payment system and a recognition that its value based interchange rates were lawful and compliant with competition law.

“We remain committed to our retail partners and will continue to focus on helping grow their businesses and encouraging the adoption of ever more convenient, safe and secure payments.”