EU charges Visa broke competition rules

The European Commission accused Visa International today of breaching EU competition rules by refusing to admit US bank Morgan…

The European Commission accused Visa International today of breaching EU competition rules by refusing to admit US bank Morgan Stanley to its global network.

A Commission statement said the decision by the unlisted grouping of 21,000 banks and financial services groups not to admit the US investment bank to Visa's network of shops and merchants in the European Union because it operated a rival card was discriminatory.

"The Commission is concerned that this Visa membership rule is not applied in an objective and non-discriminatory manner vis-a-vis all applicants for Visa membership," it said, explaining preliminary charges against the Visa association.

A spokesman for Visa International said since Morgan Stanley owned and operated a rival credit card, Discover, "any decision that allows them access to proprietary Visa information will inevitably reduce competition between payment systems."