Visa (NYSE: V), MasterCard (NYSE: MA) and seven local banks have been fined a total of 1.9 billion forints ($10.4 million, euro7 million) by authorities in Hungary for illegally fixing credit card fees, according to Associated Press.
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A 1996 deal between the banks resulted in equal fees being paid by retailers on transactions with the two credit cards, limiting competition, the Hungarian Competition Authority said in a statement released Thursday.
Visa and MasterCard were aware of the secret deal and even helped the banks reach the agreement, the authority said.
Visa and MasterCard were each fined 477 million forints ($2.6 million, euro1.76 million), while the banks were fined based on their 1996 and current market shares. OTP Bank, Hungary's largest bank, was fined 281 million forints ($1.53 million, euro1.04 million).
MasterCard said it was "exceptionally disappointed" with the ruling and would appeal it "because from the company's point of view neither the banks nor MasterCard broke the law."
The Competition Authority said it significantly cut the size of the fines because the banks and the credit cards cooperated with its investigation.
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