The U.S. Supreme Court has agreed to review an antitrust
case against American Express, following a June petition by 11
state attorneys general, according to the U.S. Supreme Court website. The court
will hear arguments in early 2018 and rule by June, according to Bloomberg. The
case challenges Amex's rules that bar Amex-accepting merchants from steering
customers to forms of payment that cost merchants less per transaction.
"The earlier
decision by the Second Circuit panel protects a consumer's right to choose how
they pay, prevents our card members from being discriminated against and
promotes competition in the payments industry," an Amex spokesperson said.
"We believe the government's claims lack merit, and we will continue to
vigorously defend the Second Circuit's decision in favor of American Express."
In the June 2 petition, led by Ohio attorney general Mike
DeWine, the states claimed the case had national implications and that Amex's rules
restrain trade for cardholders and merchants. The states also maintained that
the Second Circuit was incorrect when it said the cost of anti-steering rules
is offset by the benefit to cardholders through rewards and services. The
states hope the Supreme Court will require Amex to prove that cardholder
benefits offset merchant costs, as it has done in similar cases. That differs
from the lower court's burden of proof, which instead required the plaintiff, the
U.S. Department of Justice, to prove cardholder benefits do not offset merchant
costs.
"We look forward to making our arguments before the
court," DeWine said. "The issues in this appeal involve
anti-competitive practices that hinder Ohio consumers and Ohio retailers and
merchants."
The
U.S. appeals court ruled in favor of Amex in September 2016 and in January refused
the DOJ's request to reconsider. While the DOJ decided not to take the case to
the Supreme Court, the states took it upon themselves in June to petition the
U.S. Supreme Court to review the case.