The European Commission has fined Mastercard with €570 for obstructing merchants’ access to cross-border card payment services. The move highlights the benefits of censorship-resistant Bitcoin (BTC) over conventional centralized networks.
Mastercard Fined €570 Million
Global payments and technology company Mastercard has been fined with €570 by the European Commission for refraining merchants from accessing cross-border card payment services.
Commissioner Margrethe Vestager, who’s in charge of competition policy, noted:
European consumers use payment cards every day when they buy food or clothes or make purchases online. By preventing merchants from shopping around for better conditions offered by banks in other Member States, Mastercard’s rules artificially raised the costs of card payments, harming consumers and retailers in the EU.
The Commission concluded that the company’s rules have prevented retailers from being able to benefit from lower fees. Furthermore, it found that Mastercard restricted competition between banks cross border. By doing so, the company has infringed the antitrust rules of the European Union.
Consequentially, Mastercard altered its rules to comply with the Interchange Fee Regulation.
Hence, Why Bitcoin (BTC)
While it’s no denying that Bitcoin’s network is very far away from handling the same amount of daily transactions
One of the things that Bitcoin’s network has over that of Mastercard’s is that it’s decentralized. Hence, there’s no central authority which could potentially censor any of the participants by increasing fees, be it intentionally or not.
But this isn’t the first time Bitcoin’s network has had the upper hand. In 2018, Visa’s network crashed for a few hours, leaving millions of people without any access to their funds.
Bitcoin’s network, on the other hand, continues to have 99.98% uptime since inception, according to tracking website Bitcoinuptime.
What are your thoughts on the fine against Mastercard? Do let us know in the comments below!
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