Commission Investigating E-commerce Payment Standard
- The European Commission’s Directorate General for Competition (COMP) has started an antitrust investigation into the EPC’s standardisation process for e-commerce payments. Without foreseeing any results, it points out that the significant and steady growth of this sales channel requires careful examination of all current works.
- It wishes to ensure that “competition is not unduly restricted” by banks in payments on e-commerce websites.
- Within the EPC’s projected scheme, the dedicated button to pay using the future EPC payment method will redirect the e-merchant customer to the financial institution of its choice. The Internet user will be validating his payment to the e-merchant from this portal. The investigators have to assess if and how a non-banking player will be able to be part of this list of institutions: the institution in which the account is being held, but also an alternative player (e-wallet, private label payment from a retailer or network operator, etc.).
- The EPC, governed by EU banks, has inspired itself from three similar online interbank payment methods: iDEAL (Netherlands), giropay (Germany) and eps (Austria). Each one of these methods is designed, directed and operated by its respective banking community. Also they do not hide their intention to favour banking intermediation.
- As is the case with interchanges, the acceptable limit between co-operation (defining common basic rules) and competition of commercial offers is difficult to set. The question is to know on which market the supposed competitive restrictions are being analysed: defining an interoperable method (which can be undertaken by a standardisation organisation)? Free access by e-merchants to several means of payment (ensured by e-PSPs)? Handling of funds themselves and provision of payment services (ensured by financial institutions/PSPs)?