Nets loses challenge to market dominance ruling

Payment company Nets has lost its case against the Competition Council at the Maritime and Commercial High Court, DR reported. The case concerned a council ruling that Nets abused its dominant position in the payment solutions market from 2012 to 2016.

The 2018 ruling focused on Nets subsidiary Teller, which offered large customers discounts on the condition that they used Teller for all or a substantial share of their payment processing needs. Competition authorities found the practice violated rules intended to ensure free competition.

Payment processors handle transactions made with international credit cards, transferring money from customers’ accounts to merchants and charging a fee for each transaction. The council concluded that Teller and Nets had such a large market share that the discounts made it harder for competitors to enter the market.

Nets said it would review the several-hundred-page judgment before deciding whether to appeal. The court has said it will publish the ruling within four weeks, as it may contain confidential business information.

A separate criminal investigation into Nets led to charges seeking a fine. That case has been awaiting the outcome of the civil proceedings and has not yet been heard.

Tags: Nets, competition, business