Washington, D.C. — Following a reported settlement Visa and Mastercard have with merchants in a private antitrust case alleging the duopoly uses its market power to centrally price-fix swipe fees charged by banks that issue cards under their brand, the American Economic Liberties Project released the following statement urging the rejection of the settlement.

“This settlement is little more than window dressing and won’t reverse the alleged illegal and anticompetitive practices of this duopoly,” said Morgan Harper, Director of Policy and Advocacy at the American Economic Liberties Project. “Together, Visa and Mastercard control about 80% of the credit card market and uses that dominance to centrally fix swipe fees that cost Main Street Businesses and consumers more than $110 billion a year. At a time when families are struggling with the cost of living and small businesses are fighting to stay afloat, it’s an affront to let two monopolists preserve their outrageous profits after two decades of expensive litigation. To truly change the the market structure and lower interchange fees for consumers and merchants, Congress must pass the Credit Card Competition Act.”

Read Economic Liberties’ previous Settlement Objection here.

Read Economic Liberties’ Fact Sheet on the CCCA here.

Learn more about Economic Liberties here. 

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.