The Wall Street Journal: Judge orders American Express to revise merchant agreements

A federal judge ordered American Express Co. AXP, +0.38%   to let merchants steer customers to other forms of plastic payments, including debit cards.

The order implements a February ruling by U.S. District Judge Nicholas Garaufis that New York-based American Express violated antitrust laws by not permitting merchants to encourage customers to use cheaper cards. His ruling followed a bench trial last year.

American Express reiterated that it will appeal the decision, saying it will hurt competition.

“As we have previously stated, we plan to appeal the court’s ruling because we believe it will not provide any benefit to consumers and will in fact harm competition by further entrenching the two dominant networks,” the company said in a statement. It was referring to rival payment networks Visa Inc. V, -1.92%   and MasterCard Inc. MA, -0.04%  , which are larger than AmEx.

The decision gives merchants latitude to encourage customers to use cards other than those offered by AmEx by offering them discounts, rebates or other enticements. AmEx’s longstanding rules don’t permit merchants to steer to other forms of payment.

American Express shares were unchanged in after-hours trading, after rising 0.4% to $77.45 in regular trading.

Read an expanded version of this article at WSJ.com

Filed in: Top News Tags: 

You might like:

Mutual Funds Weekly: What you don’t know about sleep can save you money Mutual Funds Weekly: What you don’t know about sleep can save you money
MarketWatch First Take: Nvidia says crypto-mining boom is over for now MarketWatch First Take: Nvidia says crypto-mining boom is over for now
The Wall Street Journal: U.S. hints China could face sanctions over Iranian oil imports The Wall Street Journal: U.S. hints China could face sanctions over Iranian oil imports
The Margin: How Kobe Bryant scored a 3,200% return in under 4½ years in a very liquid asset The Margin: How Kobe Bryant scored a 3,200% return in under 4½ years in a very liquid asset
Earnings Results: Nvidia stock drops as crypto-mining decline overshadows earnings beat Earnings Results: Nvidia stock drops as crypto-mining decline overshadows earnings beat
The Wall Street Journal: DoorDash valuation more than doubles to $4 billion after latest funding round The Wall Street Journal: DoorDash valuation more than doubles to $4 billion after latest funding round
The Wall Street Journal: Michael Cohen changed his mind on Stormy Daniels payment after ‘Access Hollywood’ tape surfaced The Wall Street Journal: Michael Cohen changed his mind on Stormy Daniels payment after ‘Access Hollywood’ tape surfaced
Big boost in internet sales help Nordstrom beat on earnings, raise outlook Big boost in internet sales help Nordstrom beat on earnings, raise outlook
© 2597 Stock Investors News. All rights reserved. XHTML / CSS Valid.