Valitor Ltd.'s application for an exemption from the harmonised interchange fee for card transactions.

The Competition Authority received a request from Valitor hf. for an exemption from the prohibition on collusion in Article 10 of the Competition Act no. 44/2005.  Valitor requested that the Competition Authority approve the company setting a so-called harmonised interchange fee for domestic payment card transactions. Specifically, it is requested that, should the Competition Authority consider that the fee falls under Article 10 of the Competition Act No. 44/2005, an exemption be granted pursuant to Article 15 of the same Act. The interchange fee is a payment from the acquirer, on behalf of the merchant, to credit card issuers. The payment is said to be for the services that card issuers provide to merchants in connection with transactions where credit cards are used as a means of payment.

The conclusion of the Competition Authority is that, in general, it cannot be ruled out that the introduction of a harmonised intermediary fee could fulfil the requirements of Article 15 of the Competition Act. The Competition Authority must, however, reject Valitor's request for an exemption from the competition law prohibition on price-fixing in order to determine and set a harmonised interchange fee for the domestic market for credit card transactions. The decision is based on the finding that Valitor has failed to demonstrate to a sufficient extent that all the conditions of Article 15 of the Competition Act are met.

The case was appealed. See the decision of the Competition Appeals Board in case no. 1/2009