Hannah Garcia
Professor Lignugaris
In 2010, the United States State Attorney and seven other states filed a lawsuit for antitrust violations against American Express. When new credit cards entered the market such as Visa, Master Card, and Discover Card, American Express lost profits by roughly 20%. Since this hurt American Express and their earnings, they responded by tightening the contractual restraints of Non-Discrimination Provisions (NDPs). NDPs were used to control the way merchants treated American Express cardholders. American Express also made sure that merchants could not say anything about what kind of card they wanted their consumers to use or which ones they liked better. This lawsuit challenges American …show more content…
Department of Justice, Antitrust case filings. (2010). United States of America, state of Connecticut, state of Iowa, state of Maryland, state of Michigan, and the state of Missouri vs. American Express Company, American Express Travel. Retrieved from website: http://www.justice.gov/atr/cases/f262800/262864.htm
McConnell, C., Bruce, S., & Flynn, S. (2012). Economics. (19th ed.). McGraw-Hill: Retrieved from website: http://www.icbcclaiminfo.com/node/168
United States District Court, Easter District of New York, United States of America, et al., against American Express Company and American Express Travel Related Services Company, Inc. Nicholas G. Garaufis, United States District Judge.Case 1:10-cv-04496-NGG-RER Document 619 Filed 02/19/15 Page 4 of 150 PageID #: 34551: Retrieved from website: http://www.justice.gov/atr/cases/f312000/312037.pdf
The Wall Street Journal. Sidel (2015). American Express Loses Antitrust Lawsuit on Merchant Rules. (Justice Department claimed rules result in higher fees for consumers, hurt competition). Retrieved from website: