MasterCard, Visa face EU complaint over WikiLeaks donations

WikiLeaks' payment processor says it will file a complaint with the European Commission if services aren't restored

WikiLeaks' card payment processor is preparing legal action against Visa Europe, MasterCard Europe and other payment intermediaries after its contract to process payments was abruptly terminated following WikiLeaks' release of secret U.S. diplomatic cables last November.

DataCell wants Visa Europe and MasterCard Europe to allow it to resume processing payments, including donations to the whistle-blowing website, according to its lawyer Sveinn Andri Sveinsson.

Sveinsson is preparing two civil lawsuits, and readying a complaint to the European Commission about MasterCard Europe and Visa Europe, he said Monday.

The complaint will be filed with the Commission on Thursday if MasterCard and Visa do not relent, Sveinsson said. It alleges that the companies violated Articles 101 and 102 of European competition rules, which could result in a fine from the European Commission, he said.

DataCell, an Icelandic data center operator and web hosting provider, provided a payment gateway for organizations such as WikiLeaks that did not have merchant accounts for receiving card payments. DataCell received a fee from WikiLeaks for processing donations.

Donations and other transactions through DataCell's payment gateway were processed by Korta, the Icelandic agent for Teller, a payment services provider based in Denmark. DataCell's complaint alleges that Visa and MasterCard ordered Teller to stop processing donations to WikiLeaks. DataCell had a contract with Teller to process payments, but Teller terminated the contract on Dec. 7.

Visa holds a 67.6 percent share of the European market for payment cards, with MasterCard taking 27.7 percent, which the complaint says constitutes a "collective market dominance." The anticompetitive effects of their refusal to process WikiLeaks donations amounts to discrimination between customers and distorts competition, which places DataCell at a competitive disadvantage, the complaint says.

DataCell has tried to find other companies to partner with in order to process MasterCard and Visa transactions, but to no avail. Telus told DataCell that MasterCard and Visa have prohibited other companies from working with it, DataCell's complaint says. As a result, DataCell's business has been seriously damaged since it relies on the payment card processing system for its customers to purchase its services.

A Visa spokeswoman said the company had received a letter about the action but had no further comment. MasterCard did not have a comment. Sveinsson said he had not heard yet from either company.

Sveinsson said WikiLeaks is also preparing two civil lawsuits, one to be filed in Iceland and the other in Denmark. The civil suit in Iceland will seek compensation from the card companies, he said. The suit in Denmark will allege breach of contract between DataCell and Teller.

If the situation between MasterCard and Visa does not change, those suits will likely be filed later this year, as courts in Iceland and Denmark are not in session due to the summer holidays, Sveinsson said.

Send news tips and comments to jeremy_kirk@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetlegalwikileaksvisamastercardInternet-based applications and servicesCivil lawsuitsDataCellKortaTeller

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Cate Bacon

Aruba Instant On AP11D

The strength of the Aruba Instant On AP11D is that the design and feature set support the modern, flexible, and mobile way of working.

Dr Prabigya Shiwakoti

Aruba Instant On AP11D

Aruba backs the AP11D up with a two-year warranty and 24/7 phone support.

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?