The European Union (EU) is once again turning up the heat on credit card giants Visa and Mastercard. The EU has accused both companies of violating antitrust laws by setting unfair interchange fees, which are the fees charged to retailers for processing credit card payments.
This isn’t the first time the EU has gone after Visa and Mastercard. In 2014, the EU imposed a cap on interchange fees, but the companies found ways to circumvent the cap and continue charging merchants high fees. Now, the EU is threatening to issue fines and take legal action if Visa and Mastercard do not comply with the regulations.
So why should retail investors care about this? Well, for one, this could have a significant impact on the bottom line of Visa and Mastercard. If the EU successfully cracks down on their fee practices, it could lead to a decrease in revenue and potential legal consequences. This could ultimately affect their stock prices and potentially create buying opportunities for investors. Additionally, this news serves as a reminder of the importance of staying informed about regulatory changes and their potential impact on the companies in your investment portfolio.