Visa Credit Card Company has been sued by Australia’s competition watchdog for alleged “misuse of market power”.
The organization has accused Visa of preventing customers from using a currency of their choice in transactions.
The regulator also alleged that Visa “engaged in exclusive dealing” and barred retailers from using rival currency conversion services.
The Australian Competition and Consumer Commission alleged that such practices were meant to boost Visa’s revenue.
Rod Sims, chairman of the Australian Competition and Consumer Commission (ACCC) said that such moves meant that travelers to Australia were not able to decide “who does their currency conversion when withdrawing cash from an ATM”.
Visa has been sued by Australia’s competition watchdog for alleged “misuse of market power”
“In particular, they are denied the ability to know the cost of transactions in their own currency at the time the transaction is made.”
Rod Sims added that Visa’s practices of not allowing use of rival currency conversion systems at merchant outlets also meant that retailers were denied opportunity to share the revenue arising from such transactions.
“Finally, it is alleged that Australian suppliers of dynamic currency conversion (DCC) services were, and continue to be, denied the opportunity to compete with Visa in relation to DCC services at ATMs.”
Qantas Airways has been given initial approval from Australia’s competition authority for its proposed alliance with Dubai-based Emirates.
The Australian Competition and Consumer Commission (ACCC) said the benefits of the tie-up – such as co-ordinating ticket prices and schedules – would outweigh the reduced competition.
It will make a final decision in March.
Qantas and Emirates announced their alliance plans back in September. Neither is investing in the other.
“The ACCC considers that the alliance is likely to result in material, although not substantial, benefits to Australian consumers,” ACCC chairman Rod Sims said in a statement.
“The main benefit arising from the alliance is an improved product and service offering by the two airlines to their customers.”
Qantas Airways has been given initial approval from Australia’s competition authority for its proposed alliance with Dubai-based Emirates
Qantas is seeking the alliance as it aims to turnaround its loss-making international service.
“A key objective is to make Qantas International strong and viable, and bring it back to profitability,” said Alan Joyce, chief executive of Qantas.
“This partnership will help us do that.”
The tie-up with Emirates will see Qantas end its existing relationship with British Airways.