Visa Europe is expressing dissatisfaction with last week’s General Court of the European Union’s decision to uphold the 10.2 million euro (US14.7 million or £8.7 million) fine imposed on the company for refusing to do business with a U.S. bank, saying it had already settled the dispute in 2006.
The European Commission originally fined Visa in 2007 because for six years the card brand refused to allow the British subsidiary of Morgan Stanley into its network, the commission noted in an April 14 news release. Visa’s refusal meant that Morgan Stanley clients could not purchase items through the Visa payment system in the United Kingdom.
Visa claimed it refused Morgan Stanley in its request to become a Visa Europe member because at the time Morgan Stanley owned competitor Discover Financial Services.
In a statement e-mailed to PaymentsSource April 18, Visa Europe said it recognizes the court’s decision but is disappointed” with the outcome.”
“The dispute with Morgan Stanley was settled nearly five years ago in 2006, and the complaint was withdrawn at the time. Although the commission continued with the case, which has ultimately led to [last week’s] outcome,” the statement noted.
The commission, however, welcomed the court’s decision and believes Visa Europe infringed on European Union rules on restrictive business practices. In its statement, the commission also said it believes the entry of a new player would have created additional competition.
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