Contact l Sitemap

home industries issues reasearch weblog press

Home  » Issues » World Financial Institutions » Financial Services, Insurance and ...

US: Mastercard in $1.8bn Amex payment

American Express says it is to accept a payment of about $1.8bn (£0.9bn) from Mastercard after it sued the credit card giant and some large US banks.

BBC
June 25th, 2008

In 2004 American Express filed a suit saying Mastercard, Visa and their member banks had illegally blocked it from the US bank-issued card business.

American Express had accused Mastercard of conspiring to prevent some banks from issuing its credit cards.

Mastercard agreed to make 12 quarterly payments of $150m to American Express.

Last year, the company reached a settlement with Visa in a similar suit.

"We are pleased to have reached a settlement that will enable us to keep our strong balance sheet intact," said Mastercard boss Robert Selander.

He said the deal removed "the uncertainty, time commitment and expense of a prolonged court case".

Mastercard had remained the sole defendant in the lawsuit.

American Express had claimed that an association of credit cards had carried out "anti-competitive practices" that had prevented 20,000 US banks from using Amex credit card products.

It had also accused the card associations of functioning "as a cartel".



This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.