The European Commission has imposed a EUR 10 million fine on Visa for refusing to admit Morgan Stanley as a member. Consequently, Morgan Stanley was prevented from providing merchants with Visa card acceptance capabilities in the United Kingdom, where Visa transactions account for about 60 per cent of the market. The Commission found that the UK market for providing card acceptance capabilities was highly concentrated and that Morgan Stanley was one of the few potential entrants that had the necessary qualifications to contribute to more efficient competition. In the proceedings, Visa argued that Morgan Stanley was a competitor by virtue of its ownership of the Discover card network. The Commission, however, found that (i) Discover did not compete with Visa in the European Union, and (ii) Visa had admitted other members who owned competing credit/payment card networks. The Commission’s decision came despite Morgan Stanley’s withdrawal of its complaint following the company’s settlement with Visa in September 2006. It is reported that Visa will appeal the decision.