I don't even think this is a problem of competition (although more is welcome).
This is just Visa+Mastercard abusing their market position and the EU should come down on them like a ton of bricks. Incur heavy fines or break them up if necessary.
I don't even think this is a problem of competition (although more is welcome).
This is just Visa+Mastercard abusing their market position and the EU should come down on them like a ton of bricks. Incur heavy fines or break them up if necessary.
How is "abusing their market position" not a "problem of competition"?
The only reason they have that market position is because there is insufficient competition.
It is a problem of competition.
https://www.justice.gov/archives/opa/pr/justice-department-s...
Go to Malaysia, Singapore, Thailand, Japan, Taiwan and see that there are 20-30 payment systems at every convenience store, electronics store, grocery store, etc... Then go to the US where there's effectively 2. The government claims this is because Visa and Mastercard have prevented competition.
I disagree. The need for regulation in this case stems from a lack of competition.
Regulations are empirical decisions, based on a very limited amount of data, whose implications can be endless. Regulations are a shortcut capable of poisoning the market and competition. Just look at what's been done with energy, automobiles, AI, GDPR, etc. Bureaucrats are not gods; they often make mistakes and don't predict the future. Regulations should be the last resort.
Furthermore, we're talking about a US monopoly here. The goal would be to grab a share of the pie through honest competition, not to enstablish golden collars.
Regulation should facilitate competition, not legitimize the status quo.