Musgrave takes legal action for compensation from Visa and Mastercard

Musgrave – owner of the SuperValu and Centra franchises – is taking legal action against Visa and Mastercard, after UK courts ruled that imposed feeds on retailers for every card transaction breached competition laws, the Irish Times has reported.

UK courts ruled that the interchange fees imposed by Visa and Mastercard on retailers for every card transaction breached both EU and UK competition laws.

Musgrave has told its retail franchise partners that it is joining a legal action seeking compensation from the two card companies for the fees, following the precedent set by the original case, which was taken by British chain Sainsbury’s and others, the Irish Times article stated.

Several retail groups are taking the claim in the British courts. Law firm Stephenson Harwood and consultants CMS Payments Intelligence (CMSPI) are advising the plaintiffs. However Musgrave did not name its fellow litigants.

Musgrave is taking the claim in the UK courts as this gives it the best chance of receiving compensation for paying anticompetitive interchange fees.

The Irish Times reported that ‘the original ruling in the Sainsbury’s case, which established that the interchange fees were uncompetitive, covers a period when the UK was still part of the EU. The judgment notes that the British court is bound to follow European law.

‘Musgrave is inviting franchise partners to join the action, but stresses that each needs to decide for themselves whether they want to participate. The company notes that it cannot give legal advice or direction in relation to this decision.’