The Turkish Competition Authority has initiated a formal investigation into global payment giants Mastercard and Visa, citing concerns that their conduct may be impeding competition in the international payment services market.
The decision, taken by the Competition Board at its meeting on June 26, 2025 (Decision No. 25-23/552-M), was publicly announced today following notification to the concerned parties.
The investigation targets the economic entities under the control of Mastercard Incorporated and Visa Inc.—specifically, Mastercard Europe SA and its Istanbul Liaison Office, and Visa Europe Limited, Visa Europe Services LLC, and its Türkiye Representative Office.
According to the Authority’s statement, the investigation will focus on whether Mastercard and Visa have violated Articles 4 and/or 6 of the Law No. 4054 on the Protection of Competition. These provisions prohibit anti-competitive agreements and abuse of dominant position, respectively.
Allegations of Market Restrictions
At the heart of the probe are allegations that Mastercard and Visa have restricted access to card payment and point-of-sale (POS) infrastructure for payment service providers offering international solutions. Specifically, the Competition Authority is examining whether the companies have prevented foreign-based merchants from using infrastructure provided by Turkish banks—institutions regulated under the Banking Law No. 5411.
The Authority noted that domestic payment institutions may lawfully provide services to consumers making payments to overseas merchants through bilateral agreements established abroad. These arrangements allow international transactions to be “localized,” thereby avoiding Mastercard and Visa’s cross-border transaction fees.
However, preliminary findings from recent on-site inspections suggest that Mastercard and Visa may be obstructing such operations. The Authority’s statement highlights concerns that the card schemes may be using their rules and sanction mechanisms to deter Turkish banks from collaborating with payment institutions that utilize these bilateral structures. Such conduct, if confirmed, could amount to exclusionary practices limiting competition and innovation in cross-border payments.
Not the First Scrutiny
This latest action follows a separate investigation launched in November 2024 into whether Mastercard and Visa’s discount and incentive structures create de facto exclusivity with card-issuing banks in Türkiye, potentially stifling competition from rival payment networks.
The current probe will also assess whether Mastercard and Visa’s scheme rules unduly limit Turkish payment institutions’ ability to serve foreign-based merchants, further entrenching their dominant market positions.
Procedural Clarifications
The Turkish Competition Authority emphasized that the initiation of an investigation does not imply a finding of wrongdoing. “Investigation decisions taken by the Competition Board are announced to the public following the notification of the decision to the undertakings or associations of undertakings under investigation. These declarations cannot be interpreted to mean that the undertakings have violated the Act or that they have been or will be subject to sanctions,” the Authority stated.
Mastercard and Visa have yet to issue public responses to the announcement.
If the Authority ultimately finds that the companies violated Turkish competition law, the proceedings could result in substantial fines and potentially compel changes in business practices affecting the broader payment services ecosystem in Türkiye and beyond.
