The UK Competition Appeal Tribunal has approved a class action against Visa and Mastercard, potentially benefiting the travel and hospitality sectors.
- More than 2,000 UK businesses are seeking repayment for alleged overcharges on multilateral interchange fees involving Visa and Mastercard.
- The specialist law firm Harcus Parker leads the charge, highlighting these fees as anticompetitive and unlawful.
- Recent tribunal rulings urge alignment of this action with existing legal proceedings, creating a unified approach.
- Industry groups including UKHospitality and UKinbound support the initiative, which is fully funded and insured.
The UK Competition Appeal Tribunal (CAT) has provided the green light for a class action lawsuit targeting Visa and Mastercard, aimed primarily at benefitting businesses within the travel and hospitality sectors. This move opens pathways for over 2,000 UK businesses to seek financial redress related to alleged excessive charges on multilateral interchange fees.
Harcus Parker, a specialist law firm, represents the collective interests of these businesses. They argue that the fees imposed by Visa and Mastercard are both anticompetitive and unlawful, forming a significant part of the merchant service charges levied by banks on card transactions. These charges significantly impact businesses within the travel and hospitality industries, who rely heavily on card payments.
Previously, the proceedings encountered hurdles when the CAT decision a year ago suspended the actions, necessitating revised proposals from the claimants’ solicitors. However, following a hearing in April, the tribunal has now invited Harcus Parker to align their collective proceedings with concurrent ‘umbrella proceedings’ that encapsulate related claims awaiting resolution.
Jeremy Robinson, Harcus Parker’s competition litigation partner, described the tribunal’s decision as “excellent news for businesses in travel and hospitality.” This sentiment reflects the broader optimism among claimants, who see this development as a crucial step in addressing longstanding financial grievances.
The coordinated effort, backed by major industry entities such as Abta, The Advantage Travel Partnership, UKinbound, and UKHospitality, ensures there is minimal financial risk to the claimants due to comprehensive funding and insurance coverage. Anticipation mounts as further trials are slated for the coming November.
The tribunal’s recent decision marks a significant step forward in addressing the financial grievances of UK travel and hospitality businesses.
