Discover Files Federal Lawsuit Against Visa and MasterCard
Following announcement earlier today of the US Supreme Court's refusal to hear an appeal in the US anti-trust decision against Visa and MasterCard, Discover Financial Services announced that it has filed a federal lawsuit against both associations seeking damages "for harm caused by anticompetitive business practices of the two associations."
"The rejection by the Supreme Court of Visa's and MasterCard's appeal means that they have lost every attempt to salvage their illegal barriers that have stifled competition for more than a decade. Visa and MasterCard lost in the trial court, lost in the court of appeals, and now they have lost their appeal to the Supreme Court," said David W. Nelms, Chairman and Chief Executive Officer of Discover Financial Services."The courts have ruled that Visa and MasterCard abused their market power to the detriment of consumers and competition, and that their exclusionary rules limited Discover's share of the general purpose credit card market and also barred Discover from entering the debit card market," Nelms added. "Now that Visa and MasterCard's anticompetitive bylaws have finally been struck down as unlawful, we are moving forward with our business plans and are seeking triple damages for the harm that those violations have caused us."
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