Swiss Competition Commission investigates Mastercard
The Swiss Competition Commission (COMCO) today confirms that it has launched an investigation against Mastercard. The regulator is investigating a possible obstruction of SIX’s National Cash Scheme (NCS) system for ATMs. COMCO has taken provisional measures.
NCS is the system developed by SIX which makes it possible to withdraw and deposit cash as well as to check the account balance via all ATMs in Switzerland. The investigation was initiated on the basis of a complaint filed by SIX, according to which Mastercard is preventing NCS from entering the market by refusing the “Co-Badging” of its new Debit Mastercard with the NCS system.
COMCO’s investigation will determine whether Mastercard has abused its dominant position in the market.
In order for an NCS transaction to take place when using a Mastercard debit card, the NCS system must be integrated on the same card alongside the Mastercard system. This integration, called “Co-Badging”, consists of combining several payment applications on the same debit card.
Provisional measures taken by COMCO now allow banks to technically prepare their debit cards for possible future activation of the NCS system.
The measures determined by COMCO can be appealed at the Federal Administrative Court.