Competition Authority Launches Investigation into Major Payment Companies

The Competition Authority has announced that an investigation has been initiated regarding the activities of global payment system giants Mastercard (MA) and Visa (V) in Turkey. According to a statement on the agency's official website, a preliminary investigation was launched based on allegations that these companies engaged in various competition violations due to their activities in the markets for card scheme services and digital wallet services in Turkey.

At a meeting held on October 24, 2024, the Competition Board evaluated the claims that these two companies, which hold the majority of issued bank cards, credit cards, and prepaid cards in Turkey, could cause actual exclusivity in the market through the discount and incentive systems they apply in vertical relationships with card-issuing enterprises. It was reported that the investigation would examine whether these systems create a potential market closure risk by increasing the market shares of both companies at the expense of competitors.

Allegations of abuse of dominant position Additionally, allegations regarding whether Mastercard has abused its dominant position through disruptive pricing strategies in the digital wallet services market, as well as various actions that hinder the activities of competing firms, will also be evaluated within the investigation. The board noted that such actions could be seen as elements disrupting the balance of competition in the sector.

Regarding Visa's behavior in the digital wallet market, the effects of alleged anti-competitive practices, including imposing a requirement on merchants to refrain from obtaining services from competing providers, will be investigated. The anti-competitive outcomes that this obligation might produce in the market will be closely scrutinized.

In-depth examination to be conducted The Competition Authority announced that it has expanded the scope of the investigation to include an in-depth examination of the economic entity comprising Mastercard Europe SA, MasterCard Europe SA Istanbul Liaison Office, and Masterpass Technology Services Inc., under Mastercard Incorporated, as well as Visa Europe Limited, Visa Europe Services LLC, and the Visa Europe Services LLC Turkey Representative Office controlled by Visa Inc. During this process, both companies' compliance with competition law will be scrutinized meticulously.