Mastercard faces prospect of £14b class action

[NEW YORK] Mastercard faces the prospect of a £14 billion (S$24.6 billion) UK lawsuit after losing another battle at the country's highest court over a potential class action.

The Supreme Court ruled in favour of a group behind a proposed British suit that would be the largest case of its kind. The group, representing some 46 million consumers, is pursuing a case against Mastercard over swipe fees, which courts have declared unfair.

Mastercard has faced numerous lawsuits since European Union courts said its cross-border payment fees unfairly restricted competition. The long-running case, which started in 2016, will now go back before a specialist tribunal.

The decision was handed down following the death of Judge Brian Kerr, who had presided over the hearing. His vote would have led to a 3-2 ruling to dismiss the appeal. After his death, two dissenting judges dropped their opposition.

The decision comes after the Supreme Court in June ruled against Mastercard and Visa in a similar case brought by some of the largest British retailers over the fees, levied by banks at rates set by the card companies each time a credit card is swiped at a register.

The ruling also paves the way for further consumer class-action lawsuits, which were possible by a 2015 law change but have struggled to get traction.

BLOOMBERG