MasterCard, American Express settle for 1.8 billion dollars
MasterCard Inc, the world's second- biggest credit-card
network, Wednesday agreed to pay up to 1.8 billion dollars over three years to
The amount is to settle AmEx complaints that MasterCard had blocked banks from issuing American Express Cards, MasterCard said in a statement.
American Express welcomed the agreement, saying it would help defray borrower defaults, which it said are likely to be more than expected, Bloomberg financial news service reported.
American Express has sued its two larger competitors, MasterCard and Visa, after the US Supreme Court ruled several years ago that they violated antitrust laws by blocking member banks from issuing rival cards.
The two bigger companies have since agreed to offer American Express.
"The antitrust settlement we've reached with MasterCard provides us with a multi-year source of funds that should, among other things, help to lessen the impact of this weakening economic cycle," said American Express chief executive officer Kenneth Chenault in a separate statement, dpa reported.