Link ATM network granted exemption from Competition Act

The UK's Office of Fair Trading (OFT) has decided that the LINK Automatic Teller Machine (ATM) Network benefits consumers and has granted an unconditional exemption under Chapter I of the Competition Act 1998 (click here for more information). LINK's network allows the customer of any UK bank to use up to 33,000 ATMs in the UK, typically without direct charge to the customer. LINK's rules specify that a multilateral "interchange-fee" should be paid from the cardholder's bank to the ATM-owner's bank for each transaction. The OFT found that the multilateral interchange fee restricts competition. However, overall the OFT found that the LINK network brings benefits to consumers - in terms of universal access to ATMs - which would not otherwise be achieved. Frontier (London) has advised LINK on its application for Competition Act exemption, on regulatory strategy, on the determination of interchange fees, membership and governance rules, and on new product and business initiatives.