The US Supreme Court finds no abuse of dominance in dominant firm’s requirements against competitors because the market is a two-sided platform (American Express)

The Supreme Court’s American Express Decision – Two-sided Platforms and Harm to Consumers* The Supreme Court determined, in its June 2018 decision, that American Express (“Amex”) did not violate the antitrust laws by requiring merchants to refrain from encouraging patrons at the point of sale to use other cards for which merchants paid lower “swipe” fees on each transaction. The Justice Department and more than a dozen states argued that this contract requirement was anticompetitive, since it discouraged competition between credit card networks on swipe fees and resulted in higher consumer prices when merchants passed along the higher swipe fees through higher store prices. The Supreme Court majority disagreed, arguing that credit card networks need to be analyzed in the context of a

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  • Economists Incorporated (San Francisco)

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Robert D. Stoner, The US Supreme Court finds no abuse of dominance in dominant firm’s requirements against competitors because the market is a two-sided platform (American Express), 25 June 2018, e-Competitions Bulletin June 2018, Art. N° 89344

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