Depansome's application for interim relief named Nedbank as an interested party, but the e-commerce payments provider did not seek relief against Nedbank.
Gallo Images/Financial Mail/Russell Roberts
- Depansum, which provides e-commerce payment processing solutions for offshore merchants, has banned Nedbank from using its systems to process transactions and accused Visa of violating competition law.
- Visa disputes this, arguing that Depansome's local collection agency activities for foreign merchants in South Africa violate local exchange control laws, but that enforcement of its rules is not anti-competitive.
- The Competition Tribunal granted Depansome six months of interim relief, saying Visa could not prevent Nedbank from using Depansome's system by threatening to suspend card network services to the bank.
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Depansome, a South African provider of e-commerce payment processing solutions for offshore merchants, filed a visa complaint against multinational card payment provider Depansome, which prohibits it from processing transactions using Nedbank's systems. , the Competition Tribunal granted interim relief.
The Competition Tribunal heard Depansome's application for interim relief filed against Visa and its Sub-Saharan African subsidiaries on 14 December 2023. Although Nedbank was named as an interested party in the application for interim relief, Depantham did not seek relief against the lender.
The court ruled on Monday that as a result of the relief application, Visa could prohibit Nedbank from processing Depansome transactions as the acquiring bank, or require Nedbank to prevent Depansome transactions from being processed by the seller who ultimately receives the payment. It was announced that they could not be induced to do so. Trading using that system is not based in South Africa.
The interim relief order means that Visa is “enjoined and restrained” from Nedbank's use of Depansum's system for six months, or until the court has fully heard Depansum's complaint. The ban also prohibits Visa from imposing fines on Nedbank or threatening to suspend its card network services.
Depansome is banning Visa and its sub-Saharan subsidiaries from using its payment systems, taking advantage of rules imposed on banks that use multinational card payments and electronic funds transfer (EFT) systems. he claimed. It argued that this violated competition law and amounted to an abuse of market power.
Visa disputed this claim and opposed Depansome's application for interim relief, arguing in the process that Depansome's local collection agency activities for foreign merchants in South Africa violated the country's exchange control laws. Visa argued that it was not prepared to allow its payment network to engage in such allegedly illegal activities.
Visa further argued that Depansome failed to demonstrate that Visa's enforcement of the rules was anticompetitive or had an anticompetitive effect. The Competition Commission is still investigating Depansome's complaint regarding Visa's alleged abuse of dominance.
The Competition Commission is a body that investigates complaints of anti-competitive behavior and then refers them to court for prosecution if warranted.
