Tuesday, November 16, 2004
Both The Wall Street Journal and The Globe and Mail reported today on Amex's suit against Visa and Mastercard, filed in Manhattan this week. Discover filed a similar suit against the two companies last month. Both suits follow upon the Supreme Court's decision in October to uphold a lower court ruling that struck down, under the antitrust laws, Visa and Mastercard's policy of prohibiting member banks from issuing competitor's credit cards. The ruling from the Second Circuit required Visa and Mastercard to allow banks to offer other credit cards. David Boies, counsel for American Express, described the credit card companies as operating a cartel designed to reduce AmEx's profitability.