Mastercard Wins Dismissal of Antitrust Suit Over Digital Wallet Access

A federal judge in Boston has dismissed a digital wallet access antitrust lawsuit brought against Mastercard by technology startup OV Loop, marking a significant legal victory for the global payments firm, according to Reuters.

In a decision issued Wednesday, U.S. District Judge Indira Talwani ruled that OV Loop failed to provide sufficient evidence to support its claim that Mastercard was monopolizing the mobile payments market by limiting access to digital payment infrastructure. The startup, which is based in Massachusetts, had sought over $75 million in damages, alleging that Mastercard had unlawfully blocked its efforts to build a “universal” digital wallet for consumers and merchants.

Per Reuters, OV Loop’s lawsuit, originally filed last year, argued that Mastercard’s refusal to provide access to certain payment tokens constituted a violation of U.S. antitrust laws. These tokens, the company claimed, are essential for enabling transactions similar to those supported by platforms like Apple Pay and Google Pay. OV Loop asserted that Mastercard was unfairly granting token access only to select entities, thereby stifling competition.

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However, Judge Talwani sided with Mastercard, stating that the plaintiff did not meet the legal threshold required to demonstrate monopolistic behavior. She also pointed to a prevailing principle in antitrust law: companies generally have the discretion to choose their business partners. OV Loop, she noted, could not overcome that legal standard in its complaint.

In court filings, Mastercard argued that OV Loop had not shown any definitive refusal to engage in business, highlighting that the startup acknowledged Mastercard’s position as one of several players in the payment card market. According to Reuters, Mastercard told the court, “OV Loop admits that Mastercard competes with three other payment card networks.”

Mastercard declined to comment on the ruling, while attorneys representing OV Loop did not respond to requests for comment, Reuters reported.

Founded in 2018, OV Loop has ambitions to launch a “super app” offering a suite of digital commerce services. The company noted in its filings that it had secured similar token access from Visa, but maintained that Mastercard’s policies impeded its ability to compete on equal footing.

The case, formally known as OV Loop Inc v. Mastercard Inc, was heard in the U.S. District Court for the District of Massachusetts under docket number 1:24-cv-10412.

Source: Reuters