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Bloomberg
The US Supreme Court accepted a case that could roil the credit-card business, agreeing to consider reviving government allegations that American Express Co. thwarts competition by prohibiting merchants from steering customers to cards with lower fees.
A federal appeals court had thrown out the lawsuit, saying the US government and 11 states failed to prove that the American Express rules harmed cardholders as well as merchants. The Supreme Court’s decision to take the case offers new hope to retailers trying to reduce the $50 billion in fees they pay to credit-card companies each year. It’s a boost for Discover Card Services, which says the rules undercut its ability to compete with American Express.
AmEx shares dropped 1.1 percent to $91.88 at 12:25 pm in New York, the biggest decline since September and the second-worst performance in the 67-company S&P 500 Financials Index. Discover gained as much as 2 percent, the most since September.
The justices will hear arguments early next year and rule
by June.