American Express Co. has had a hard year so far. Two weeks ago, the company's shares dropped on the announcement that its 16-year partnership with Costco Wholesale Corp, which exclusively accepted AmEx cards, was ending. The company recently lost an anti A federal judge in New York ruled that American Express American Express violated antitrust laws when it told merchants they couldn’t both accept its cards and try and “steer” customers to cards offered by archcompetitors Visa Visa and MasterCard American Express required its merchants to accept all credit cards equally, and they could not encourage consumers to use one credit card over another through practices such as signs that say "We Prefer Visa" or potential discounts to Discover cardholders. American Express required its merchants to accept all credit cards equally and could not encourage consumers to use one credit card over another through practices like signs that say "We Prefer Visa" or possibly offering discounts to Discover cardholders. More from Bloomberg.com: Yahoo CEO Mayer Unveils Mobile-Application Development Tools American Express failed to show that its so-called non-discrimination provisions, imposed on merchants who agree to accept its card, don’t harm competition, U.S American express called the ruling wrong and plans to appeal were especially affected by AmEx nondisclosure terms since they had no other choice than accept higher credit card processing costs and reflect those costs in higher prices or additional .
It was also found that the fees that American Express charges from merchants are routinely higher than those of Visa, MasterCard and other credit-card companies. But merchants that accept American Express cards are barred by the company from motivating The fees that American Express charges merchants are routinely higher than those of Visa, MasterCard and other credit-card companies. But merchants that accept American Express cards are barred by the company from encouraging customers to pay with the American Express required its merchants to accept all credit cards equally and could not encourage consumers to use one credit card over another through practices like signs that read “We Prefer Visa” or possibly offering discounts to Discover cardholders. U.S. Judge Nicholas G. Garaufis of the Eastern District of New York ruled that American Express had created “an unlawful restraint” by prohibiting any merchant that accepts its cards from encouraging customers to pay with lower-cost cards. This .
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