The UK Financial Conduct Authority said it is investigating Mastercard, Visa and PayPal for suspected anti-competitive conduct linked to the funding and use of PayPal’s digital wallet.
In a statement published on Tuesday, the FCA said it is investigating Mastercard, PayPal and Visa under Chapter I of the Competition Act 1998, which prohibits anti-competitive agreements and practices. Mastercard and Visa are also being investigated under Chapter II of the Act, which concerns potential abuse of a dominant market position.
The regulator said the investigation follows financial reporting published by PayPal Holdings Inc., but stressed it has “reached no conclusions nor made any findings” that competition law has been breached.
The FCA said it is currently gathering evidence and may later issue a statement of objections setting out a provisional view of any alleged infringement. It noted that not all investigations result in formal allegations or enforcement action.
The probe concerns the funding and usage of PayPal’s digital wallet, though the FCA did not provide further details about the suspected conduct.
Under the Competition Act 1998, Chapter I prohibits agreements or practices that prevent, restrict or distort competition in the UK, while Chapter II bans the abuse of a dominant market position.
The FCA noted that Competition Act investigations can also be pursued by the Competition and Markets Authority.
Source: https://www.fca.org.uk/news/press-releases/competition-act-1998-investigations
