The article refers to a recent UK Competition Appeal Tribunal (CAT) ruling that rejected Visa and Mastercard’s attempt to strike out merchants’ antitrust damages claims on the theory that any overcharge was fully “passed on” to consumers, so merchants suffered no loss.
Core holding
Visa and Mastercard argued that, even if interchange fees were unlawful, retailers passed those costs through in higher retail prices, eliminating merchant loss and defeating the class claims.
The CAT refused to accept that argument at the strike‑out stage, holding that pass‑on is a complex, evidence‑heavy issue that must be tested at trial rather than used to knock out the claims in limine.
As a result, the retailers’ collective proceedings over allegedly unlawful card payment fees can go forward, and the networks cannot avoid liability simply by asserting complete pass‑through as a matter of law.
Practical implications
For UK competition collective actions, the decision reinforces that pass‑on is generally a merits question, not a pleading‑stage bar, which favors claimants in interchange and other overcharge cases.
For Visa/Mastercard swipe‑fee litigation more broadly, the ruling adds pressure alongside ongoing U.S. and EU disputes and proposed legislative interventions (such as efforts to mandate routing competition and curb interchange fees).
The exchange for the debt economy
