Mastercard, PayPal, Visa face anti-competition probe
The Financial Conduct Authority is investigating Mastercard, PayPal, and Visa for suspected anti-competitive conduct. The probe focuses on the funding and usage of PayPal's digital wallet under the Competition Act 1998.
Digital wallet funding under scrutiny
The Financial Conduct Authority (FCA) has confirmed investigations into Mastercard, PayPal, and Visa under the Competition Act 1998.
The probe specifically targets suspected anti-competitive conduct related to the funding and usage of PayPal's digital wallet.
Mastercard, PayPal, and Visa are being investigated under Chapter I of the Act, which prohibits agreements or practices that restrict competition.
Additionally, Mastercard and Visa face investigation under Chapter II, which addresses the abuse of a dominant market position.
The FCA emphasized that it has not yet reached any conclusions or made findings regarding competition law infringements.
This follows the recent publication of financial reporting by PayPal Holdings Inc.
The Act's reach and FCA's process
The Competition Act 1998 broadly prohibits agreements and conduct that may damage competition in the UK.
Chapter I targets anti-competitive agreements, while Chapter II addresses the abuse of a dominant market position.
The FCA's powers under this Act are distinct from its Financial Services and Markets Act 2000 enforcement.
The authority is currently gathering evidence and may issue a statement of objections outlining its provisional view of an infringement.
Not all cases result in such a statement, and a final decision on law infringement would follow opportunities for representation.
Source: Competition Act 1998 investigations
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