$39.6b class action

LONDON - A specialist London court will this week re-consider allowing an historic 14 billion pound ($F39.6b) class action against Mastercard to proceed, which could entitle adults in Britain to about 300 pounds each if successful.

Former financial ombudsman Walter Merricks, who alleges that Mastercard overcharged more than 46 million people in Britain over nearly 16 years, hopes the

Competition Appeal Tribunal (CAT) will certify the case after the UK Supreme Court overruled objections to it proceeding in December.

A two-day court hearing will kick off on Thursday and will determine the fate of Britain's first mass consumer claim — and clarify the rules for a string of other competition class actions that have stalled in its wake.

Mr Merricks, who is being advised by US-headquartered law firm Quinn Emanuel, alleges Mastercard charged excessive “interchange” fees – the fees retailers pay credit card companies when consumers use a card to shop — between May 1992 and June 2008 and that those fees were passed on to consumers as retailers raised prices.

Mastercard says the claim should not be brought, that people received valuable benefits from its payments technology and that the lawsuit is driven by US lawyers and backed by organisations focused on making money for themselves.

“We fundamentally disagree with this claim...,” it said.

Legal arguments this week are expected to revolve in part around whether estates of the deceased should have a claim and whether compound interest should accrue, which are “significant”

for the ultimate size of the claim, Mastercard says.

The case was filed in 2016, one year after the CAT was nominated to oversee Britain's US-style “opt-out” class action regime for breaches of UK or EU competition law — and 12 years after the European Commission ruled that Mastercard had charged unlawful cross-border interchange fees over the period.