Berlin—The global law firm Dentons has advised the umbrella associations of the German banking industry (DK) in the framework of a complex proceeding of the Federal Cartel Office on standardized fee regulations of the electronic cash-system. The German banking industry comprises the Federal Association of German Cooperative Banks (BVR e.V.), the Federal Association of German Banks (BdB e.V.), the Federal Association of Public Banks in Germany (VÖB e.V.), the German Savings Bank and Giro Association (DSGV e.V.) and the Association of German Mortgage Banks (VdP e.V.).

In 2011 the Federal Cartel Office had initiated an administrative procedure on several regulations of the electronic cash agreement, one of them the standardized merchant fee. This procedure was now mutually settled—determining that there was no infringement of antitrust law—by commitments of the German banking industry. The commitments mainly concern the merchant fees for the payment guarantees provided by the card issuers within the electronic cash—or rather girocard system. From now on these fees will be bilaterally negotiated in advance between the issuing banks and savings banks and the card acceptors. In doing so the electronic cash system will assure competition between the technical service provider and the credit institutes on all levels—no matter whether merchant or cardholder.

The team of Dentons partner Dr. Jörg Karenfort and counsel Dr. Josef Hainz has advised the German banking industry in this mandate at the interface between payment legislation and antitrust law. The teams’ industry expertise on highly regulated markets was a great advantage.

For background information: Electronic cash is the system used by the German banking industry for cashless payment with the girocard (formerly ec-card). With more than 90 million girocards involved, 2.5 billion annually effected transactions and a volume of more than €130 billion; it is the most important card-based payment system in Germany.

Advisor DK/BdB:
Dentons (Berlin): Dr. Jörg Karenfort (Partner), Dr. Josef Hainz (Counsel), Dr. Normann Hölzel (Associate, all Competition)

About Dentons

Across over 80 countries, Dentons helps you grow, protect, operate and finance your organization by providing uniquely global and deeply local legal solutions. Polycentric, purpose-driven and committed to inclusion, diversity, equity and sustainability, we focus on what matters most to you. www.dentons.com