20 October 2017
Find out more

American Express to appeal against antitrust ruling

20 February 2015  |  6100 views  |  0 American express logo

American Express is to appeal a US Federal Court ruling that its exclusivity conditions constitute an unlawful restraint of trade, contending that the judgment would harm competition by further entrenching the two dominant payment networks, Visa and MasterCard.

The case against Amex was brought by the US Department of Justice, which argued that the card scheme's rules prohibiting merchants from accepting alternative cards with lower fees was a violation of anti-trust laws.

In a statement noting its intent to appeal, the company said: "Only a small percentage of Visa and MasterCard holders carry American Express cards. By contrast, most American Express Card Members carry a competing card in their wallet. Today’s decision means merchants would be able to steer customers to use Visa and MasterCard, while it would be virtually impossible to steer away from them.”

The court's decision was met with delight by merchant groups.

“Today’s ruling is one step forward to bringing badly-needed competition and transparency to the entire credit card industry," says the Merchant Payments Coalition. "Allowing retailers to ask consumers to use a less expensive card will result in lower prices for consumers and a fairer market for the fees merchants currently pay to accept credit and debit cards."

Visa and MasterCard avoided legal action by agreeing to allow retailers to use discounts and other incentives to encourage consumers to use alternative cards.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Supreme Court declines retailers' interchange challenge

Supreme Court declines retailers' interchange challenge

21 January 2015  |  6004 views  |  1 comments | 9 tweets | 8 linkedin
Google sues Visa and MasterCard over interchange fees

Google sues Visa and MasterCard over interchange fees

06 January 2015  |  16591 views  |  0 comments | 38 tweets | 42 linkedin
EU agrees interchange reforms

EU agrees interchange reforms

18 December 2014  |  11233 views  |  12 comments | 14 tweets | 11 linkedin
Visa and MasterCard bow to Canadian pressure for lower interchange fees

Visa and MasterCard bow to Canadian pressure for lower interchange fees

04 November 2014  |  9349 views  |  1 comments | 21 tweets | 26 linkedin
Wal-Mart sues Visa over card fees

Wal-Mart sues Visa over card fees

27 March 2014  |  8474 views  |  2 comments | 7 tweets | 9 linkedin
EC accepts Visa Europe credit card fee cap proposal

EC accepts Visa Europe credit card fee cap proposal

26 February 2014  |  8771 views  |  0 comments | 8 tweets | 13 linkedin
Retailers file interchange settlement appeal

Retailers file interchange settlement appeal

03 January 2014  |  5112 views  |  0 comments | 1 tweets | 3 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.innotribe.comvisit www.fivedegrees.nl

Who is commenting?

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15975 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
9066 views comments | 16 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8212 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7218 views comments | 9 tweets | 17 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
6711 views comments | 18 tweets | 25 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job