Brussels, 14/04/2011 (Agence Europe) - In its judgement of Thursday 14 April in the Case T-461/07, the EU General Court confirmed a fine of €10.2 million imposed by the Commission on Visa International and Visa Europe in 2007 for their refusal to accept the European subsidiary of Morgan Stanley in the European Union region of their network for payment by Visa and Mastercard between 2000 and September 2006. The grounds they gave for this was that Morgan Stanley was then the owner of the Discover Card network, considered by Visa as a rival network.
According to the Commission, Visa's behaviour had the effect of excluding a “potential competitor” from entering a market marked by a high degree of concentration. In their appeal for cancellation of the ruling, Visa International and Visa Europe claimed that Morgan Stanley could have entered the market by concluding a “fronting arrangement” with a Visa member financial institution, capable of acting as an interface between the network and Morgan Stanley. While acknowledging this possibility, the Court nonetheless confirmed the Commission's ruling on this point, given the practical difficulties encountered by Morgan Stanley for finding a partner for such an agreement. It confirmed, moreover, the Commission's judgement whereby competition on the market could have been heightened by the presence of the new player. The Commission had examined the impact of Visa's behaviour not only on the degree of competition at the time of the facts but also on the potential degree of competition. Finally, it specified that the description of “potential competitor” is based on the ability of that competitor to integrate the market, which was the case of Morgan Stanley. Refuting all the other arguments put forward by Visa, the General Court confirmed the fine imposed, to the Commission's great satisfaction. (F.G./transl.jl)