The U.S. Department of Justice's next stop in its fight
against American Express may be the Supreme Court. In September, an appeals
court ruled in favor of Amex, preserving the anti-steering rules the card
network imposes on merchants, and yesterday, the court refused the DOJ's
request to reconsider.
Amex forbids its merchants from steering customers to
cheaper forms of payment, and the DOJ claims that is "an unreasonable restraint
on trade" for merchants and cardholders. Amex stated, "As we have
maintained all along, we believe the DOJ's claims lack merit and would not provide
any benefit to consumers."
The case, which Amex has been fighting since 2010, has been
long-winded and may yet go on. "We will continue to vigorously defend the
2nd Circuit panel's decision if the DOJ decides to seek review by the U.S.
Supreme Court," Amex said.
Travel merchants like Southwest Airlines and
Drury Hotels—along with major retailers, grocers and pharmacies—also oppose
Amex's "nondiscrimination provisions" on merchants.