Mastercard settles long-running UK dispute

Mastercard and Walter Merricks have reached an in-principle settlement in the historic class action brought on behalf of 45.5 million UK consumers. The agreement follows eight years of legal battles before the Competition Appeal Tribunal (CAT) and could mark a pivotal moment for collective actions in the UK.

The case stems from a 2007 European Commission finding that Mastercard’s interchange fees infringed competition law. The subsequent class action, initiated by Merricks in 2016, sought billions in compensation for consumers allegedly overcharged due to these fees.

While details of the settlement remain confidential pending CAT approval, the announcement has sparked significant commentary within the legal and litigation finance sectors.

Expert Reaction

Mohsin Patel, Director and Co-Founder at Factor Risk Management, hailed the development as a landmark moment for consumers and the collective action regime.

“This is excellent news for UK consumers, claimant lawyers, litigation funders, and ATE insurers,” Patel said. “However, by the time the CAT approves the settlement and consumers receive recompense, it will be nearly two decades since the European Commission’s initial ruling against Mastercard.”

Patel highlighted the challenges inherent in achieving justice in complex, high-stakes litigation. “This outcome underscores the importance of the CAT and the role of litigation funders and insurers in enabling such actions,” he added.

Broader Implications

The case has been closely watched as a test of the UK’s collective action regime, which has gained traction in recent years. While the prolonged timeline raises questions about efficiency, the settlement reinforces the viability of group claims as a mechanism for consumer redress.

Patel concluded with cautious optimism, stating, “While justice delayed is justice denied, this resolution signals progress. We remain hopeful for the future of collective actions and the strengthening of consumer rights in the UK.”

The CAT’s approval of the settlement will be a decisive step forward, potentially setting a precedent for similar actions in the future. For now, UK consumers and the legal community await further details on what could be one of the most consequential settlements in recent years.

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