Visa 2011 Annual Report Download - page 134

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2011
(in millions, except as noted)
monetary and injunctive relief. On December 29, 2010, the Competition Authority issued a decision that it had found no violation of Venezuelan competition
law by Visa or any of the other defendants.
European Interchange Proceedings. On April 3, 2009, the European Commission issued a Statement of Objections ("SO") to Visa Europe, Visa
International and Visa Inc. alleging a breach of European competition law. Visa Inc. and Visa International were served with the Statement of Objections on
June 1, 2009. The SO alleged a breach of Article 81 of the EC Treaty and Article 53 of the EEA Agreement. The SO was directed to Visa Inc. and Visa
International with respect to the "Honor All Cards" rule, the "no-surcharge" rule, and certain debit interchange fee practices. On August 10, 2009, Visa Inc.
and Visa International filed a response to the SO.
On April 26, 2010, Visa Europe announced an agreement with the European Commission, subject to public consultation, to end the proceedings with
respect to Visa Europe's immediate debit interchange fees. After public consultation, on December 8, 2010, the European Commission concluded that the
proposed agreement with Visa Europe addressed its competition concerns, made the agreement legally binding upon Visa Europe, and closed its investigation
with regard to interchange fees for debit card transactions. For credit card and deferred debit card payments, the European Commission announced that it will
"continue to investigate." Meanwhile, it has issued further requests for information to Visa Europe, Visa Inc. and Visa International and commissioned a cost-
of-cash study. Pursuant to existing agreements among the parties, Visa Europe is obligated to indemnify Visa International and Visa Inc. in connection with
this proceeding, including payment of any fines that may be imposed.
Canadian Competition Proceedings
Competition Bureau. On April 21, 2009, Visa Canada Corporation ("Visa Canada") received an oral notification from the Canadian Competition
Bureau that it had initiated a civil inquiry regarding interchange and certain of Visa policies relating to merchant acceptance practices. The Bureau issued a
voluntary draft information request to Visa on August 4, 2010, seeking information about certain merchant acceptance practices, interchange (including the
setting of default interchange), and fees paid by issuers and acquirers to Visa.
On December 15, 2010, the Commissioner of Competition filed a Notice of Application against Visa Canada and MasterCard. The proceeding
challenges certain Visa policies regarding merchant acceptance practices, including Visa's "no-surcharge" and "honour all cards" policies under the
Competition Act. Visa Canada filed a Response to the Notice of Application on January 31, 2011. On February 10, 2011, Toronto Dominion Bank and the
Canadian Bankers Association sought leave to intervene in the proceeding; Visa supported such requests. Following a hearing on March 7, 2011, the
Competition Tribunal granted the intervention requests.
The hearing before the Competition Tribunal on the merits of the case is scheduled to begin on April 23, 2012.
Merchant Litigation. On December 17, 2010, a purported civil follow-on case to the Competition Bureau's proceeding was filed against Visa Canada
and MasterCard in the Superior Court of Québec, Canada, on behalf of a class of merchants and a class of consumers. The action, 9085-4886 Quebec Inc. et
al. v. Visa Canada et al., asserts claims under Section 76 of the Competition Act, which does not provide for a civil cause of action. Plaintiff seeks unspecified
money damages and injunctive relief.
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