Competition Board investigation against Mastercard and Visa

On June 26, 2025, the Turkish Competition Board, under decision number 25-23/552-M, initiated an investigation to ascertain whether Mastercard Incorporated and Visa Inc., both global entities in the card payment systems market, along with their controlled undertakings, have infringed upon Articles 4 and/or 6 of Law No. 4054. The core of the investigation lies in allegations that these companies have hindered the activities of international payment solution providers by preventing banks operating under Banking Law No. 5411 from enabling other payment service providers to utilize payment/POS infrastructure for merchants located abroad. (Articles 4 and 6 of Law No. 4054 address behaviors such as “abuse of dominant position” and “market foreclosure through vertical agreements.”) The official announcement of this decision was published on the Turkish Competition Authority’s website on July 18, 2025.

Scope of the Investigation:

The investigation encompasses a detailed examination of allegations that card payment/POS infrastructure services provided via Turkish-based banks have been unduly restricted for international payment service providers serving businesses abroad. Specifically, the Competition Board will scrutinize whether Mastercard and Visa have leveraged their digital wallet services and scheme rules to exclude alternative payment solutions, and whether the provision of card payment/POS infrastructure to businesses located abroad has been obstructed, thereby restricting competition.

Process and Potential Outcomes:

The investigation will proceed through on-site inspections, evidence gathering, and the submission of defenses by the involved parties. Upon completion of these stages, the Competition Board will evaluate the findings and determine whether to impose any penalties, obligations, or other sanctions on Mastercard and Visa.

Implications for the Card Payments Market:

Currently, Visa and Mastercard mandate that transactions involving payment cards issued by Turkish payment institutions to foreign-based companies must be processed through the acquirer bank affiliated with the foreign entity. This practice is classified as a cross-border transaction, resulting in higher commission/service fee pricing compared to domestic transactions. The card-issuing bank is also subject to increased fees, which ultimately leads to a higher cost for consumers. This cost escalation is further compounded by the use of the exchange rate on the settlement date, rather than the transaction date, due to clearing requirements.

Potential Consequences:

Should the Competition Board conclude that Visa and Mastercard have indeed restricted competition, and definitively establish that foreign companies are being prevented from utilizing local payment service providers for collections made with Turkish cards, it would pave the way for Turkish-licensed payment institutions to offer services to foreign-based member businesses for processing transactions involving Turkish cards. Consequently, the Competition Board’s investigation into Mastercard and Visa extends beyond a mere assessment of these two undertakings’ conduct; it carries significant implications for the structure of the card payments market in Turkey, the advancement of financial technologies, and the payment habits of Turkish consumers. This investigation could lead to a more competitive and consumer-friendly landscape in the Turkish card payments sector.