Merricks v Mastercard: Competition Appeal Tribunal Approves Settlement, but Issues of Distribution Reserved for Future Judgment

On February 21, 2025, the Competition Appeal Tribunal (“CAT”) approved the £200m settlement of the claim brought by Mr. Merricks on behalf of over 44 million UK consumers against Mastercard in relation to interchange fees charged on certain payment card transactions in the period 1992-2008. 

Julian Stait, partner, and Mark Padley, special counsel, together with other members of the Litigation & Arbitration Group in Milbank LLP's London office offer some preliminary thoughts on the implications of the CAT’s settlement decision, specifically discussing (i) the background to Mr. Merricks’ claim; (ii) the test for the approval of settlements in opt-out collective proceedings; and (iii) the CAT’s decision to approve the settlement as well as the issues raised in relation to distribution.

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