AmEx Merchant Rules Enhance Competition, Justices Told

Law360, Washington (January 23, 2018, 7:00 PM EST) -- A pair of economists on Tuesday urged the U.S. Supreme Court to uphold a Second Circuit decision in favor of American Express Co. in a suit challenging rules that prevent merchants from steering customers to other credit cards, arguing the steering provisions enhance competition.

The rules had been challenged by the U.S. Department of Justice and a group of 17 states, alleging they violated the Sherman Act. AmEx has argued that the rules allow for effective competition — and the Second Circuit agreed they didn’t run afoul of antitrust laws — before the case was appealed to the Supreme Court. Economists...

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