Heavy Penalty to 5 Payment Companies from the UK

The UK has fined five different payment companies, including financial giant Mastercard, today. your country Payment Systems Regulator (PSR) The companies whose agency fined the five companies were providing prepaid cards to people in the country, such as the homeless, victims of abuse, and asylum seekers. The reason for the fine was ‘cartel behavior’.

According to the statement made by the authorized institution, the five payment companies that the said penalty was imposed on were not able to receive each other’s customers regarding the prepayment cards distributed by the local governments to those in need. about not fighting they agreed. In other words, these five companies were protecting their own customers with the agreement they made and were not competing for each other’s customers.

A total of $45 million was fined:

The five companies identified as violating competition law were Mastercard, allpay, Advanced Payment Solutions, Prepaid Financial Services and Sulion. The institution has given these five companies a total of £33 million, i.e. about $45 million in fines cut. The biggest slice of the penalty pie belonged to Mastercard. The amount of the penalty charged to Mastercard only 31.6 million pounds (approximately $42 million) it happened.

Chris Hemsley, head of PSR, said in a statement about the sentencing. “This investigation and the substantial fines we handed out send a clear message that PSR has zero tolerance for cartel behavior.” used the phrases. Hemsley also explained how the agreement between the five companies affected the market as follows:

“This situation is particularly serious because illegal cartel behavior meant there was less competition and less choice for local authorities. It is used by the most vulnerable people in society. they may have missed out on cheaper or better quality products It means.”

All five companies admitted to breaking the law and agreed with PSR.