The Department of Justice (DOJ) sued the three largest credit card companies on Monday, alleging anticompetitive practices. Specifically, the suit was filed against Mastercard, Visa, and American Express, alleging that the companies encourage merchants to prefer certain types of credit card payments.
The DOJ reached an agreement with Visa and Mastercard, but not Amex, who vowed to fight the lawsuit. The settlement with Visa and Mastercard the companies agreed not to prohibit merchants from offering rebates or benefits for customers using certain cards. Merchants can now also express a preference for certain low-cost cards. The DOJ argued that without those terms, merchants were implicitly prohibited from encouraging customers from using certain cards.
3 Largest Credit Card Companies Sued By Government For ‘Anticompetitive Rules’ | The Huffington Post