American Express Fee Accusations Get U.S. High Court Hearing
- Government says American Express thwarts competition
- Retailers seek to reduce $50 billion in fees to card companies
American Express Co. chip credit cards are arranged for a photograph in Washington, D.C., U.S., on Monday, Oct. 24, 2016. American Express surged the most in more than seven years after posting third-quarter profit that beat analysts' estimates and raising its full-year profit forecast.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The U.S. Supreme Court accepted a case that could roil the credit-card business, agreeing Monday 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 U.S. government and 11 states failed to prove that the American Express rules harmed cardholders as well as merchants.