CommunityPam's House Blend

What do you think this is all about — American Express plans to sue Visa and MC?

UPDATE, from (AP):


American Express Co., the travel and financial services giant, said Monday it was suing Visa and MasterCard over anticompetitive business practices.

The way for the lawsuit was cleared by the U.S. Supreme Court on Oct. 4, when it issued a final ruling in an antitrust case brought by the Justice Department, which accused the two biggest card associations in America, Visa USA Inc. and MasterCard International Inc., of restraining competition.

The high court’s decision let stand a lower court ruling requiring Visa and MasterCard to allow their member banks to issue competing cards. That cleared the way for American Express of New York and Discover Financial Services Inc., a division of the New York-based Morgan Stanley, to begin partnering with U.S. financial institutions.

Immediately after the Supreme Court ruling was announced, Discover Financial Services filed an antitrust suit against MasterCard and Visa in U.S. District Court in New York seeking unspecified damages for alleged anticompetitive behavior that kept it out of the lucrative bank market.

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Pam Spaulding

Pam Spaulding