AmEx Accused by U.S. of Stifling Card Firm Competition
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American Express Co.’s rules barring merchants from encouraging customers to use credit cards with lower processing costs stifle competition, a U.S. lawyer argued at the start of the iconic company’s antitrust trial.
Businesses that accept AmEx are prohibited by the company from offering incentives to customers who use competing cards such as those issued by Visa Inc. and MasterCard Inc., which charge less to process payments. AmEx’s all-or-nothing proposition is illegal, the government claims in a lawsuit joined by 17 states.