28 Feb 2017, 4:05 pm
The Competition and Markets Authority (CMA) said earlier this year that it had concerns that the deal, as framed at the time, would negatively impact on competition in relation to the supply of infrastructure services to the LINK payment system.
Subsequently MasterCard and VocaLink have outlined a number of measures designed to address the CMA's concerns. The CMA has now opened a formal consultation on the draft plans, which is open to stakeholders until 11 March.
Under the companies' proposals, VocaLink would allow a new supplier of infrastructure services to use its "existing network connectivity" to provide those services to LINK members, removing the need for a new provider to build its own connections.
The measures, if agreed on by the CMA, would also see VocaLink transfer intellectual property rights relating to the LINK LIS5 messaging standard to LINK. The messaging standards allow LINK members to communicate with one another when cash is being withdrawn at ATMs.
MasterCard will also pay towards the cost LINK members will incur in "changing to a new supplier of infrastructure services to LINK", according to the proposals.
The CMA has until 15 March to consider the package of measures proposed by the companies. If the undertakings are accepted then it would mean the CMA would not open a formal competition investigation into the planned deal.