- Abusive dominance inquiry response to increase in complaints -

OTTAWA - Diane J. Brisebois, Chair of the StopStickingItToUs Coalition and President and CEO of Retail Council of Canada commends the Competition Bureau for investigating Visa and MasterCard under the "abuse of dominance" rules of the Canadian Competition Act. The public announcement of the investigation came from Bureau Deputy Commissioner, Richard Taylor today at the opening session of Senate Banking Committee hearings that will "study the credit and debit card systems in Canada and their relative rates and fees, in particular for businesses and consumers".

"We are encouraged that the Competition Bureau has undertaken this review in response to RCC's recommendations and the many complaints of our coalition members," said Brisebois. "As merchants across the country are struggling to survive, VISA and MasterCard have used their dominance in Canada to drive-up the fees merchants and consumers pay to use they cards."

Recent moves to rein-in the fee practices of Visa and MasterCard in England and Australia illustrate the urgent need to take a serious look at the system here in Canada. The Bureau is investigating card company practices under Section 79 of the Competition Act, which deals specifically with abuse of dominance. The act states that "abuse occurs when a firm or group of firms with market power engages in conduct with an intended negative effect that is exclusionary, disciplinary or predatory towards competitors or potential competitors, with the result that competition is or is likely to be prevented or lessened substantially."