The UK Financial Conduct Authority (FCA) opened an investigation into PayPal, Mastercard, and Visa for suspected anti-competitive behavior. This probe proceeds under the Competition Act 1998.
Regulators are examining the funding and usage of PayPal's digital wallet. The investigation focuses on whether agreements between the three firms restrict or distort market competition.
All three companies face scrutiny for potential prohibited agreements. Mastercard and Visa face additional investigation regarding the possible abuse of a dominant market position.
This move follows increased regulatory focus on fees charged by payment networks. The FCA has not yet reached a conclusion on whether the firms violated competition laws.