Sainsbury's Supermarkets Ltd v Visa Europe Services LLC & Anor [2017] EWHC 3047 (Comm) (30 November 2017)

Sainsbury's Supermarkets Ltd v Visa Europe Services LLC & Anor [2017] EWHC 3047 (Comm) (30 November 2017)

Visa's UK MIFs constitute a restriction of competition by effect in the acquiring market under Article 101(1) TFEU. The restriction is not objectively necessary as an ancillary restraint. The UK MIFs do not satisfy the exemption criteria under Article 101(3) TFEU. Sainsbury's is entitled to damages for the overcharge paid above lawful levels of MIFs.

Citation
[2017] EWHC 3047 (Comm)
Parties
Claimant: Sainsbury's Supermarkets Ltd; Defendant: Visa Europe Services LLC; Defendant: Visa Europe Ltd; Defendant: Visa UK Ltd
Jurisdiction
England and Wales
Judgment Date
30 November 2017
Procedural Posture
Commercial Court Claim / Phase 1 Trial on Liability and Partial Quantum
Outcome
Judgment for the Claimant on liability; entitlement to damages for overcharge; quantum to be determined in phase 2.
Legal Topics
Multilateral Interchange Fees, Article 101 TFEU, Merchant Service Charges, Ancillary Restraints, Exemption Under Article 101(3), Interchange Fee Regulation
Competition Law European Union Law Commercial Law Multilateral Interchange Fees Article 101 TFEU Merchant Service Charges Ancillary Restraints Exemption Under Article 101(3) +1 more

Case Brief

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Parties

Sainsbury's Supermarkets Ltd

Claimant

Visa Europe Services LLC

Defendant

Visa Europe Ltd

Defendant

Visa UK Ltd

Defendant

Procedural Posture

Commercial Court Claim / Phase 1 Trial on Liability and Partial Quantum

Legal Issues

  1. 1 Whether Visa's UK Multilateral Interchange Fees (MIFs) restrict competition in breach of Article 101(1) TFEU
  2. 2 Whether the restriction is objectively necessary as an ancillary restraint
  3. 3 Whether the UK MIFs are exempt under Article 101(3) TFEU

Ratio Decidendi

Visa's UK MIFs constitute a restriction of competition by effect in the acquiring market under Article 101(1) TFEU. The restriction is not objectively necessary as an ancillary restraint. The UK MIFs do not satisfy the exemption criteria under Article 101(3) TFEU. Sainsbury's is entitled to damages for the overcharge paid above lawful levels of MIFs.

Court Disposition

Judgment for the Claimant on liability; entitlement to damages for overcharge; quantum to be determined in phase 2.

Orders

  • Declaration that Visa's UK MIFs were unlawful under Article 101(1) TFEU
  • Visa to pay damages to Sainsbury's for overcharge above lawful MIF levels