UK competition regulator not to refer MasterCard/Vocalink deal to Phase 2 investigation

Maria Nikolova

The CMA has accepted the undertakings offered by Mastercard to address competition concerns stemming from its purchase of VocaLink.

Some progress has been made as with regards to the merger between Mastercard, an affiliate of MasterCard International Incorporated, and VocaLink Holdings Limited.

Earlier today, the UK Competition and Markets Authority (CMA) announced that it accepted the undertakings offered by Mastercard to address competition concerns related to its purchase of VocaLink.

On January 18, 2017, the watchdog said it would review the proposed remedies amid concerns that since VocaLink and Mastercard are two of the three most credible providers of infrastructure services to the LINK ATM network operating across the UK, the merger would reduce the number of bidders and curtail the ability of the LINK scheme to obtain good value when tendering for an infrastructure provider.

The remedies outlined by MasterCard and VocaLink seek to reduce the cost to LINK of switching from VocaLink to alternative suppliers of infrastructure services.

The list of proposals includes:

  • VocaLink making its connectivity infrastructure available to a new supplier of infrastructure services to LINK.
  • VocaLink transferring or licensing to LINK the intellectual property rights relating to the LINK LIS5 messaging standard.
  • VocaLink contributing to LINK members’ switching costs.

In mid-March this year, the CMA said the review period would be extended until May 15, 2017, the reason for that being that the regulator “ will require further time to consider responses to its consultation and make a decision”.

Today, the CMA said that after considering responses to a formal consultation, it concluded the proposals are sufficient to address its competition concerns. This means that the merger will not be referred to a Phase 2 investigation (that is, an in-depth investigation) and the undertakings which have been signed by Mastercard will become effective from this date.

Read this next

Digital Assets

Binance upgrades Bahrain license to offer full-suite of crypto services

The Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).

Digital Assets

BitMEX spot exchange hits $24 million in daily volume

The newly-launched spot market of crypto exchange BitMEX reported a record of $24 million in 24-hour trade activity on May 25.

Retail FX

Financial Commission certifies offering of trade copier 4X Solutions

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has certified the trading technology offered by trade copier 4X Solutions.

Industry News, Inside View

LIVE from Devexperts webinar for brokers on Fractional Trading

Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.

Industry News, Retail FX

ASIC celebrates retail ban on binary options as 68% of wholesale clients lose money

In the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The product intervention order does not apply to wholesale clients.

Crypto Insider

Investing in crypto: how to stay away from weak players

The main reason behind the hacks of crypto exchanges is weak key management. For example, all 4 hacks that took place in 2021 were caused by the ability of hackers to obtain access to hot wallets. 

Retail FX

Vantage launches swap-free gold XAUUSD trades for all clients until end of July

“As the greenback continues to strengthen, we want to support traders who remain bullish on gold or seek short term trading opportunities amid the volatility”

Industry News

Broadridge launches ESG reporting solution ahead of European regulation SFDR

The Broadridge managed solution for EET adds to existing Broadridge services, including European PRIIPs Template, European MiFID Template, Solvency II Tripartite Template and many more across the European jurisdictions.

Industry News

iCapital to acquire embedded structured investment platform SIMON

SIMON’s platform, SPECTRUM, is a multi-dimensional allocation analysis and portfolio construction tool designed to evaluate how structured investments and/or annuities may fit into a portfolio. 

<