Thursday, November 09, 2006

"Visa, MasterCard in N.Z. Regulator Price-Fixing Suit" (Bloomberg)

Excerpt: Visa International Inc., the world's biggest credit-card company, and second-largest MasterCard International Inc., are among companies named in a suit by New Zealand's antitrust regulator over alleged price fixing. ... It alleges that fixing of interchange fees, which account for as much as 1.8 percent of each transaction, is anti- competitive. Retailers aren't allowed to recover the fee from card users and generally recoup the cost by increasing prices to all customers, the regulator said.

[Source: Bloomberg]