² Payment service providers is the term introduced by the Payments Services Directive, infra note 26; it covers banks and non-banking providers of payments services. It is so used in this paper, and the term “bank(s)” is used to refer to banks with the exclusion of non-bank payment service providers. In contrast, for the sake of clarity, the terms “inter-bank” and “bank-to-customer” are used, but they refer to relationships among payment service providers, and payment service providers and customer respectively.Google Scholar

³ Búrca, Graine de & Scott, Joanne, Introduction, in Law and New Governance in the Eu and the US 1, 2 (Graine de Búrca & Joanne Scott eds., 2006).Google Scholar

⁴ Sabel, Charles & Zeitlin, Jonathan, Learning from Difference: The New Architecture of Experimentalist Governance in the European Union, 14 Eur'n L. J. 271 (2008).Google Scholar

⁵ Búrca, De & Scott, , supra note 3; David Trubek & Louise Trubek, New Governance & Legal Regulation: Complementarity, Rivalry, and Transformation, 13 Col. J. of Eur'n L. 539 (2006).Google Scholar

⁶ Búrca, De & Scott, , supra note 3, at 3.Google Scholar

⁷ Kilpatrick, Claire, New EU Employment Governance and Constitutionalism, in Law and New Governance in the EU and the US 121, supra note 3, at 134; Trubek & Trubek, supra note 5, at 543-44.Google Scholar

⁸ Trubek, & Trubek, , supra note 5, at 543.Google Scholar

⁹ Id. at 548-49. See also De Búrca & Scott, supra note 3, at 4. For other examples of hybrid governance see e.g. Kilpatrick, supra note 7; Graine de Búrca, EU Race Discrimination: A Hybrid Model?, in Law and New Governance in the EU and the US 97, supra note 3; Joanne Scott & Jane Holder, Law and New Environmental Governance in the European Union, in supra note 3, at 211, 235; David Trubek et. al., ‘Soft Law’, ‘Hard Law’, and EU Integration, in Law and New Governance in the EU and the US, supra note 3, at 65.Google Scholar

¹⁰ In the transnational realm, Peer Zumbansen has argued that transnational corporate governance should be conceived as neither public nor private but rather as instances of “global assemblages,” as conceptualized by Saskia Sassen, or through examples of transnational legal pluralism; see Peer Zumbansen, Neither ‘Public’ nor ‘Private’, ‘National’ nor ‘International’: Transnational Corporate Governance from a Legal Pluralist Perspective, 38 J. of L. and Soc. 50, in particular 56 (2011); Saskia Sassen, Territory, Authority, Rights: From Medieval to Global Assemblages (2008).Google Scholar

¹¹ Relevant contributions concerning the EU include Renauld Dehousse, Regulation by Networks in the European Community: The Role of European Agencies, 4 J. of Eur'n Pub. Pol'y (1997); The Transformation of Governance in the European Union (Rainer Eising & Beate Kohler-Koch eds., 1999); Informal Governance in the European Union (Thomas Christiansen & Simona Piattoni eds., 2003); Burkar Eberlein & Edgar Grande, Beyond Delegation: Transnational Regulatory Regimes and the EU Regulatory State, 12 J. of Eur'n Pub. Pol'y 89 (2005). Informal governance by networks has also been widely discussed in the field of international relations and international law: see e.g. David Zaring, International Law by Other Means: The Twilight Existence of International Financial Regulatory Organizations, 33 Tex. Int'l L. J. 281 (1998); Paul Schiff Berman, From International Law to Law and Globalization, 43 Col. J. of Trans. L (2004); Anne-Marie Slaughter, a New World Order (2004).Google Scholar

¹² See e.g. Froomkin, Michael, Wrong Turn in Cyberspace: Using ICANN to Route Around the APA and the Constitution, 50 Duke L. J. 17 (2000); Tim Büthe & Nathaniel Harris, The Codex Alimentarius Commission: A Hybrid Public-Private Regulator, in Handbook of Transnational Governance: Institutions and Innovations 219 (Thomas Hale & David Held eds., 2011).Google Scholar

¹³ Abbott, Keneth & Snidal, Duncan, Hard and Soft Law in International Governance, 54 Int'l Org. 421 (2000).Google Scholar

¹⁴ See also Freeman, Jody, The Private Role in Public Governance, 75 N.Y.U. L. Rev. 543 (2000); Fabrizio Cafaggi, Rethinking Private Regulation in the European Regulatory Space, in Reframing Self-Regulation in European Private Law 3 (Fabrizio Cafaggi ed., 2006).Google Scholar

¹⁵ Black, Julia, Constitutionalising Self-Regulation, 59 Mod. L. Rev. 24 (1996); Cafaggi, supra note 14.Google Scholar

¹⁶ Spindler, Gerald, Market Processes, Standardisation, and Tort Law, 4 Eur'n L. J. 316 (1998).Google Scholar

¹⁷ Freeman, Jody, Collaborative Governance in the Administrative State, 45 UCLA L. R. 1 (1997); Martha Minow, Partners, Not Rivals: Privatization and the Public Good (Beacon Press. 2002); The Tools of Government: A Guide to the New Governance (Lester Salamon ed., Oxford University Press 2002); John Donahue & Richard Zeckhauser, Public-Private Collaboration, in The Oxford Handbook of Public Policy (Michael Moran et. al. eds., 2008).Google Scholar

¹⁸ Salamon, , The tools of government, id.Google Scholar

¹⁹ Alfred Aman, Jr., The Limits of Globalization and the Future of Administrative Law: From Government to Governance, 8 Ind.'a J. of Glob. Leg. Stud. 379 (2001).Google Scholar

²⁰ Mattli, Walter & Büthe, Tim, Setting International Standards: Technological Rationality or Primacy of Power?, 56 World Politics 1 (2003); Walter Mattli & Tim Büthe, Global Private Governance: Lessons from a National Model of Setting Standards in Accounting, 68 Law & Contemporary Problems (2005).Google Scholar

²¹ Abbott, Keneth & Snidal, Duncan, The Governance Triangle: Regulatory Standards Institutions and the Shadow of the State, in The Politics of Global Regulation 44 (Walter Mattli & Ngaire Woods eds., 2009). See also Colin Scott, Analysing Regulatory Space: Fragmented Resources And Institutional Design, 2001 Pub. L. (2001); Julia Black, Enrolling Actors in Regulatory Systems: Examples from UK Financial Services., Public Law 63 (2003); Fabrizio Cafaggi, The New Foundations of Transnational Private Regulation, 38 J. of L. and Soc. 20, 41-49 (2011).Google Scholar

²² Regulation (EC) No 2560/2001 of the European Parliament and of the Council of 19 December 2001 on Cross-border Payments in Euro, 2001 OJ (L 344), at 13. In fact this story can be traced back much further back in history; for an overview, see Agnieszka Janczuk-Gorywoda, Private Regulation and European Integration: Evidence from the Payments, Professional Services and Housing Sectors (2012) (Ph.D. Thesis, European University Institute), on file with the author.Google Scholar

²³ The scope of Regulation 2560/2001 was limited to retail (up to 50,000 euro) credit transfer end electronic card transactions; Articles 1-3.Google Scholar

²⁴ European Payments Council, EPC Roadmap 2004-2010, available at: http://www.europeanpaymentscouncil.eu/documents/Roadmap%20public%20version%204th%20April%20amended%20March%2008.pdf (last accessed: 1 December 2012).Google Scholar

²⁵ E.g. European Payments Council, SEPA Credit Transfer Scheme Rulebook, Version 6.0 Approved, Section 5.2 (Nov. 17, 2011), available at: http://www.europeanpaymentscouncil.eu/knowledge_bank_detail.cfm?documents_id=551 (last accessed: 1 December 2012).Google Scholar

²⁶ Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on Payment Services in the Internal Market Amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and Repealing Directive 97/5/EC, 2007 OJ (L 319), at 1.Google Scholar

²⁷ For the competition law issues that SEPA can raise, see Roland Uittenbogaard, Turkeys Voting for Christmas? How Self-regulation Makes the European Payments Market More Competitive, 1 J. of Pay. Strat. & Sys. 318 (2007).Google Scholar

²⁸ The only place in the PSD where SEPA is mentioned is in Recital 4, and it states that it “is vital, therefore, to establish at Community level a modern and coherent legal framework for payment services, whether or not the services are compatible with the system resulting from the financial sector initiative for a single euro payments area, which is neutral so as to ensure a level playing field for all payment systems, in order to maintain consumer choice”.Google Scholar

²⁹ See e.g. Uittenbogaard, , supra note 27, at 319.Google Scholar

³⁰ As a confirmation that the two sets of rules are factually interdependent, SEPA Rulebooks were modified after the PSD had been adopted in order to be compatible with it. What is more, SEPA Direct Debit Scheme Rulebook explicitly states that the implementation of the PSD is a prerequisite for the launch of the Scheme; see European Payments Council, SEPA Core Direct Debit Scheme Rulebook, Version 6.0 Approved, Section 1.8 (Nov. 17, 2011), available at: http://www.europeanpaymentscouncil.eu/knowledge_bank_detail.cfm?documents_id=553 (last accessed: 1 December 2012).Google Scholar

³¹ Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009 on Cross-border Payments in the Community and Repealing Regulation (EC) No 2560/2001, 2009 OJ (L 266) at 11.Google Scholar

³² Regulation (EU) No. 260/2012 of the European Parliament and of the Council of 14 March 2012, Establishing Technical and Business Requirements for Credit Transfers and Direct Debits in Euro and Amending Regulation (EC) No 924/2009, 2012 OJ (L 94) at 22.Google Scholar

³³ Regulation (EC) No 924/2009, in particular at Recitals 2-5.Google Scholar

³⁴ Id., Recital 1.Google Scholar

³⁵ Id., Recital 7.Google Scholar

³⁶ Id., Recital 10.Google Scholar

³⁷ Id., Recital 11.Google Scholar

³⁸ Id., Recital 12.Google Scholar

³⁹ Id., Art. 2(1).Google Scholar

⁴⁰ See Commission Staff Working Document, Accompanying Document to the Proposal for a Regulation of the European Parliament and of the Council on Cross-border payments in the Community: Impact Assessment, SEC (2008) 2598 (Oct. 13, 2008).Google Scholar

⁴¹ European Payments Council, Resolution: Reachability of all Scheme Participants in SEPA Credit Transfer and Direct Debit Schemes, (Nov. 1, 2006), available at: http://www.europeanpaymentscouncil.eu/documents/EPC146_06_RESOLUTION%20on%20Reachability.pdf (last accessed: 1 December 2012).Google Scholar

⁴² Regulation 924/2009, Art. 8.Google Scholar

⁴³ Regulation (EU) No. 260/2012, Recital 1.Google Scholar

⁴⁴ Id., Recital 2.Google Scholar

⁴⁵ Id., Recital 5.Google Scholar

⁴⁶ Id., Recital 6.Google Scholar

⁴⁷ Id., Article 4(1)(b).Google Scholar

⁴⁸ Id., Article 3(1) and 3(2).Google Scholar

⁴⁹ Since 2003 the ECB publishes annual progress reports on SEPA, available at: http://www.ecb.int/paym/sepa/stakeholders/eurosystem/html/index.en.html#reports (last accessed: 1 December 2012)); among many communications and other documents of the Commission probably the most influential was the Consultative Paper on SEPA Incentives (Febr. 13, 2006).Google Scholar

⁵⁰ See European Central Bank, Governance, available at: http://www.ecb.int/paym/sepa/stakeholders/governance/html/index.en.html (last accessed: 1 December 2012).Google Scholar

⁵¹ See the list of agendas and summaries from COGEPS meetings, European Central Bank, Contact group on euro payments strategy, available at: http://www.ecb.int/paym/groups/cogeps/html/index.en.html#meetings (last accessed: 1 December 2012).Google Scholar

⁵² Janczuk-Gorywoda, Agnieszka, Author's personal interview with ECB officer (Brussels, Dec. 14, 2009), on file with the author.Google Scholar

⁵³ The European Single Market, Payments Committee, European Commission, available at: http://ec.europa.eu/internal_market/payments/advisory_groups/pc_en.htm (last accessed: 1 December 2012).Google Scholar

⁵⁴ The European Single Market, Payments System Market Experts Group, European Commission, available at: http://ec.europa.eu/internal_market/payments/advisory_groups/psmeg_en.htm (last accessed: 1 December 2012).Google Scholar

⁵⁵ The European Single Market, Commission's role in SEPA, European Commission, available at: http://ec.europa.eu/internal_market/payments/sepa/ec_en.htm (last accessed: 1 December 2012).Google Scholar

⁵⁶ Id. Google Scholar

⁵⁷ See e.g. European Competition Network (ECN Subgroup Banking and Payments), Information Paper on Competition Enforcement in the Payments Sector, (March 2012), available at: http://ec.europa.eu/competition/sectors/financial_services/information_paper_payments_en.pdf (last accessed: 1 December 2012).Google Scholar

⁵⁸ The European Single Market, SEPA Council, European Commission, available at: http://ec.europa.eu/internal_market/payments/sepa/council_en.htm (last accessed: 1 December 2012).Google Scholar

⁵⁹ For more on this, see Agnieszka Janczuk-Gorywoda, Case Study: Payments Systems (2012) (HIIL project on the Constitutional Foundations of Transnational Private Regulation and Governance Design, unpublished manuscript) (on file with author).Google Scholar

⁶⁰ Trubek & Trubek, supra note 5, at 543.Google Scholar

⁶¹ On the understanding of private rule making from the perspective of legal pluralism, see Gunther Teubner, Global Bukowina: Legal Pluralism in the World Society, in Global Law Without a State (Gunther Teubner ed., 1997).Google Scholar

⁶² European Payments Council, supra note 25, at Sections 5.1 and 5.15; European Payments Council, supra note 30, Sections 5.1. and 5.16; European Payments Council, SEPA Business to Business Direct Debit Scheme Rulebook, Version 4.0 Approved, Sections 5.1. and 5.16 (2011), available at: http://www.europeanpaymentscouncil.eu/knowledge_bank_detail.cfm?documents_id=555 (last accessed: 1 December 2012).Google Scholar

⁶³ Cf. Büthe, Tim & Mattli, Walter, The New Global Rulers: The Privatization of Regulation in the World Economy (2011); Fabrizio Cafaggi & Katharina Pistor, Distributional Effects of Transnational Regulation, Reg. & Gov'ce. (2012, forthcoming).Google Scholar

⁶⁴ Even the key member of the EPC, the European Saving Banks Group, despite the official position of the EPC to support end-date for SEPA migration, used a vague language in its response to the Commission's consultation on SEPA migration end-date and refrained from supporting it; see CIRCA, Responses, available at: http://circa.europa.eu/Public/irc/markt/markt_consultations/library?l=/financial_services/sepa_migration_end-date&vm=detailed&sb=Title (last accessed: 1 December 2012).Google Scholar

⁶⁵ See responses to the Commission's Consultation on possible end-date(s) for SEPA migration, id. Google Scholar

⁶⁶ See e.g., Pelkmans, Jacques, The New Approach to Technical Harmonization and Standardization, 25 J. of Com. Mkt. Stud. 249 (1987); Ellen Vos, Institutional Frameworks of Community Health and Safety Legislation: Committees, Agencies, and Private Bodies (1999); Michelle P. Egan, Constructing a European Market: Standards, Regulation, and Governance (2001); Christian Joerges et. al., The Law's Problems with the Involvement of Nongovernmental Actors in Europe's Legislative Processes: The Case of Standardisation under the ‘New Approach’, 99/9 EUI Working Papers (1999); Harm Schepel, The Constitution of Private Governance: Product Standards in the Regulation of Integrating Markets (2005).Google Scholar

⁶⁷ Council Resolution of 7 May 1985 on a New Approach to Technical Harmonization and Standards, 1985 OJ (C 136) at 1.Google Scholar

⁶⁸ Annex of the Council Directive 83/189/EEC of 28 March 1983 Laying Down a Procedure for the Provision of Information in the Field of Technical Standards and Regulations, 1983 OJ (L 109) at 8.Google Scholar

⁶⁹ See in particular, Schepel, supra note 66.Google Scholar

⁷⁰ See General Guidelines for the Cooperation between CEN, CENELEC and ETSI and the European Commission and the European Free Trade Association (March 28, 2003), 2003 OJ (C 91) at 4. It substituted the previous agreement of 1984. For details, see id. at 104-07, 242-46; Fabrizio Cafaggi & Agnieszka Janczuk, Private Regulation and Legal Integration: The European Example 12 Bus. and Pol. 10-12 (2010).Google Scholar

⁷¹ Directive 83/189, supra note 68.Google Scholar

⁷² See Topan, Angelina, The Resignation of the Santer-Commission: The Impact of ‘Trust’ and ‘Reputation’ 6 European Integration online Papers (2002), available at: http://eiop.or.at/eiop/texte/2002-014a.htm (last accessed: 1 December 2012); Beate Kohler-Koch & Berthold Rittberger, 'The Governance Turn’ in European Studies, 44 J. of Comm. Mkt. Stud. 27 (2006); David Bailey, Governance or the Crisis of Governmentality? Applying Critical State Theory at the European Level, 13 J. of Eur'n Pub. Pol'y 16, 27 (2006).Google Scholar

⁷³ COM (2001) 428 final (July 25, 2001).Google Scholar

⁷⁴ E.g. COM (2002) 278 final (June 5, 2002); COM (2002) 275 final (June 5, 2002) and in particular, Interinstitutional Agreement on Better Law-making between European Parliament, the Council of the European Union and the Commission of the European Communities, 2003 OJ (C 321) at 1. For the list of key documents, see European Commission, Key Documents, available at: http://ec.europa.eu/governance/better_regulation/key_docs_en.htm (last accessed: 1 December 2012).Google Scholar

⁷⁵ See e.g. Everson, Michelle, Control of Executive Acts: The Procedural Solution. ‘Proportionality, State of the Art Decision-Making and Relevant Interests’, in The EU Constitution – The Best Way Forward? 181 (Deidre Curtin et. al. eds., 2005).Google Scholar

⁷⁶ Schepel, , supra note 66, at 6.Google Scholar

⁷⁷ Id. Google Scholar

⁷⁸ For more on this, see Janczuk-Gorywoda, supra note 59.Google Scholar

⁷⁹ See Christian Joerges, Integration through De-legalisation?, 33 Eur'n L. Rev, 291, 295 (2008).Google Scholar

⁸⁰ Everson, Michelle, A Technology of Expertise: EU Financial Services Agencies 3-4 LSE ‘Europe in Question’ Discussion Paper No. 49/2012, available at: http://www2.lse.ac.uk/europeanInstitute/LEQS/LEQSPaper49.pdf (last accessed: 1 December 2012).Google Scholar

⁸¹ E.g. Dehousse, , supra note 11; Christian Joerges & Jürgen Neyer, From Intergovernmental Bargaining to Deliberative Political Processes, 3 Eur'n L. J. 273 (1997); Giandomenico Majone, From the Positive to the Regulatory State: Causes and Consequences of Changes in the Mode of Governance, 17 J. of Pub. Pol'y 139 (1997); Good Governance in Europe's Integrated Market (Christian Joerges & Renauld Dehousse eds., 2002); Graine De Búrca, The Constitutional Challenge of New Governance in the European Union, 56 Curr. Leg. Prob. 403 (2003); Sabel & Zeitlin, supra note 4; Colin Scott, Governing Without Law or Governing Without Government? New-ish Governance and the Legitimacy of the EU, 15 Eur'n L. J. 160 (2009); Martin Shapiro, Independent Agencies, in The Evolution of EU Law 111 (Paul Craig & Graine de Búrca eds., 2011).Google Scholar