French conglomerate LVMH, owner of Louis Vuitton, Tiffany & Co, Christian Dior, and Bulgari, has filed lawsuits against Visa and Mastercard in connection with a longstanding dispute over credit card fees.
Multiple lawsuits
According to The Telegraph, more than a dozen LVMH brands have issued lawsuits against the American payment giants in the High Court. While specific details of the case remain undisclosed, it is believed to be linked to the protracted battle over interchange fees.
Controversial interchange fees
The dispute over interchange fees revolves around their alleged anti-competitive nature, significant financial burden on businesses, and subsequent price hikes for consumers.
Support from other companies
This move by LVMH follows similar actions by other major companies, including Vodafone, Ocado, and Fortnum & Mason, which have lodged separate complaints against Visa and Mastercard. Hearings for their grievances are scheduled for November in the Competition Appeal Tribunal.
Response from payment systems
Visa and Mastercard, on their part, have defended against various claims globally, arguing that the fees are regulated and reflect the value of the services they provide. Since 2015, interchange fees for debit cards have been capped at 0.2%, and for credit cards at 0.3%, aiming to curb excessive charges and ensure fairer transactions.
