U.S. Files Antitrust Suit Against AmEx(online.wsj.com)
online.wsj.com
U.S. Files Antitrust Suit Against AmEx
http://online.wsj.com/article/SB10001424052748704631504575532074128517394.html?mod=rss_whats_news_us
2 comments
I am a little confused on the whole antitrust angle when their market share is so low?
Anti-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.
They'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.
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.
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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.