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U.S. Files Antitrust Suit Against AmEx
- tptacek 16y agoFTA: At issue are the varied processing fees that the card companies charge merchants when customers use different cards. Cards that offer rewards such as airline miles cost merchants more, and merchants who agree to accept a company's cards must accept all of them. [and] As a civil case, the settlement isn't likely to involve any financial penalties for the companies... I like Amex a lot, and a lot of what I like about them is the club they very overtly wield with merchants. It's the card I feel safest using.
- protomyth 16y agoI am a little confused on the whole antitrust angle when their market share is so low?
- tptacek 16y agoThey're using antitrust statutes that restrict practices that restrain trade, but they aren't claiming that Amex is a monopoly. The DoJ may also lose.
- Eddk 16y agoAnti-trust is about anti-competitive behavior, size doesn't (or shouldn't) really matter. It just so happens that big entities have more incentives and capabilities to be anti-competitive which is why anti-trust charges are often brought against big companies by smaller rivals.