The U.K.’s Competition Appeal Tribunal announced its judgment Tuesday (May 20) in a long-running class action lawsuit that was brought against Mastercard over its swipe fees.
The judgment determines the distribution of the settlement of 200 million pounds that was announced in February, the Competition Appeal Tribunal said in a summary of the judgment.
It approves the settlement sought by the class representative, Walter Merricksand Mastercard, according to the summary.
The funder of Merricks’ lawsuit, Innsworth Capitalhad objected to the settlement, saying the settlement figure was too low, and had begun arbitration against him, the summary said.
As part of the settlement, Mastercard agreed to give Merricks indemnity of 10 million pounds, per the summary.
“The Tribunal held that it was entirely satisfied that the terms of the settlement were just and reasonable such that the settlement should be approved […],” the summary said. “The likelihood of judgment being obtained for an amount significantly in excess of £200 million was low. Further, the personal indemnity to Mr. Merricks, in the unusual circumstances of this case, did not impugn the Tribunal’s view of the settlement.”
With this final approval of the settlement, millions of U.K. consumers are set to receive up to 70 pounds each, the Independent reported Tuesday.
“The settlement that has today been finally approved represents a fair and just outcome for U.K. consumers,” Merricks told the Independent. “On any view, recovering £200 million by way of a settlement for U.K. consumers is a huge sum, and that will translate into a meaningful impact in the pockets of U.K. consumers.”
Merricks, a former financial ombudsman, filed the lawsuit in 2016, alleging that Mastercard charged exorbitant interchange fees — which retailers pay credit card companies when consumers shop with that card — and that those fees were passed on to consumers in the form of higher retail prices.
Mastercard countered that consumers derived valuable benefits from its payment technology.
Merricks and Mastercard announced an agreement in principle to settle the lawsuit on Dec. 3.
The Competition Appeal Tribunal approved the settlement in February, adding that the approval was subject to finalization of the details and that a formal order would follow.
