Mastercard (MA.N) has announced an agreement in principle to settle a landmark legal case concerning card fees in the United Kingdom. The case, which was brought against the global payments giant by consumer advocate Walter Merricks, has been one of the most high-profile collective actions in UK legal history, representing the interests of approximately 46 million British consumers.
The lawsuit, originally filed in 2016, accused Mastercard of charging excessive card fees, which the claimants argued inflated the costs of goods and services across the UK. The case was approved as a collective action in 2021, marking the first such action to be allowed in the UK. It has since been a prolonged legal battle that navigated its way through the UK Competition Appeal Tribunal (CAT), the UK Supreme Court, and back to the CAT.
In a statement issued on Tuesday, Mastercard confirmed that, during a hearing at the CAT, it reached an agreement with Merricks, who serves as the representative of the claimant class, to settle the case. However, the agreement is still subject to formal approval by the Tribunal.
The scale of the case has been massive. In October, the CAT noted that the value of the claim was estimated to be approximately £10 billion ($12.7 billion), a sum that would have been one of the largest of its kind in UK legal history. However, sources close to the settlement have indicated that the agreed-upon amount is approximately £200 million, which is significantly lower than the initial claim.
Mastercard expressed its relief at reaching a settlement, with a spokesperson stating, “We are pleased to have reached an agreement in principle to bring this long-running case to a close and move forward.”
Walter Merricks, who has led the legal action on behalf of UK consumers for nearly nine years, expressed satisfaction with the settlement. “I am very pleased that, after almost nine years of litigation with Mastercard, we have reached an agreement that will deliver meaningful compensation to those consumers who come forward to participate in the distribution of damages,” he said.
The settlement marks a significant milestone in the development of collective consumer actions in the UK, particularly in cases involving large multinational corporations. The case also highlights the growing importance of consumer rights in the digital economy and the role of litigation in holding businesses accountable for their financial practices.
Consumers who are part of the claimant class will now have the opportunity to claim compensation, with details on how to proceed expected to be made available once the settlement is formally approved.
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