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PayPal, Mastercard and Visa are being investigated by the UK’s financial regulator for alleged anti-competitive behaviour in a rare antitrust probe by the watchdog.
The Financial Conduct Authority said on Wednesday that it was investigating three of the world’s largest payments companies because of concerns that the use and funding model of PayPal’s digital wallet may break competition rules.
The regulator said it was investigating the three companies for potential breaches of the UK Competition Act 1998, which prohibits companies from agreeing to practices that may distort competition or trade.
Mastercard and Visa are also being investigated for potentially breaching rules that bar abuse of a dominant market position, the FCA said.
The FCA rarely launches investigations under the Competition Act 1998. In 2019, it issued its first fine under its competition powers over rule breaches by UK asset managers.
The watchdog said it “has reached no conclusions nor made any findings with regard to competition law having been broken”.
Visa said the FCA had opened an investigation into “contractual provisions regarding the PayPal digital wallet”.
Mastercard also confirmed the FCA had requested details of its “contractual relationship with PayPal”, adding that it “works to ensure we meet the highest standards of competition law”.
Visa, Mastercard and PayPal all said they were co-operating with the FCA.
This is a developing story
