Mastercard Ordered to Pay Delivery Hero $44 Million by UK Court


07/19/2023
Delivery Hero Wins $43.6 Million UK Lawsuit Against Mastercard

Delivery Hero, the German food delivery giant, has emerged victorious in a legal battle against Mastercard in the United Kingdom courts, resulting in a significant award of $43.6 million. The dispute arose after a payment processing deal between the two companies fell through last year.

According to reports, the payment-processing deal was aimed at encouraging more customers to use Mastercard’s payment service on Delivery Hero’s platform. However, Mastercard terminated the agreement, accusing Delivery Hero of not meeting certain conditions.

In the U.K. court ruling, Mastercard was ordered to pay the original sign-on bonus of $40 million, along with an additional interest of $3.58 million. Despite the legal victory, Mastercard has yet to respond to requests for comment on the matter.

This development follows recent legal challenges faced by Mastercard and Visa in the U.S., where they are facing an antitrust lawsuit filed by Block. The suit alleges that the payment giants conspired to inflate fees and increase retail prices paid, specifically focusing on interchange fees charged to merchants.

In the U.K., four proposed lawsuits against Mastercard and Visa, brought by Commercial and Interregional Card Claims (CICC), were halted by the Competition Appeal Tribunal. The lawsuits accused the payment processors of overcharging merchants through multilateral interchange fees.

As the legal landscape unfolds, Delivery Hero continues to make strides toward its profitability goals. The company reported a 12% year-over-year revenue growth on April 27, signaling progress despite challenging market conditions.

For now, the U.K. court’s ruling in favor of Delivery Hero serves as a significant financial win for the food delivery company and emphasizes the ongoing complexities in the payment processing industry.

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