Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Google alleges Visa and MasterCard conspired to fix credit/debit card interchange fees, (Dec 29, 2014)
Law Firms Mentioned:Jackson Walker L.L.P.
Organizations Mentioned:Google Inc. | Google Payment Corporation | Jackson Walker, LLP | MasterCard Incorporated | MasterCard International Incorporated | Mastercard | Mastercard International, Inc. | Visa | Visa Inc. | Visa International Service Association | Visa U.S.A., Inc. | Visa USA, Inc.
By Linda O’Brien, J.D., LL.M.
Visa, Inc. and MasterCard Incorporated and their member banks have conspired to fix credit and debit card interchange fees paid by retail merchants, according to a complaint filed in the federal district court of Texarkana, Texas (Google Inc. v. Visa, Inc., December 23, 2014).
Internet search engine provider Google Inc. and Google Payment Corporation are merchants that accept Visa and MasterCard credit and debit cards for payment.
Visa, Inc. and Mastercard Incorporated are national bank card associations of member banks and financial institutions that issue credit and debit cards to consumers. Interchange fees are imposed on retail merchants by Visa and MasterCard for the privilege of accepting an issuing bank’s card from a consumer as a means of payment.
The complaint alleges that, from January 1, 2004 to November 28, 2012, Visa and MasterCard conspired with their member banks to adopt and impose default interchange fees at supra-competitive levels and other restraints on merchants that accept Visa and MasterCard credit and debit cards.
Google and Google Payment Corporation have timely opted out of a settlement class approved by the federal district court in Brooklyn, New York on November 28, 2012, in the class action, In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, Case No. 1:05-md-01720. The plaintiffs seek to recover actual damages for their losses.
The plaintiffs assert claims for violations of Section 1 of the Sherman Act. The action requests actual damages, costs of suit, attorneys’ fees, and any other just and proper relief.
The case is No. 5:14-cv-00162.
Attorneys: David T. Moran and Charles L. Babcock (Jackson Walker L.L.P.) for Google Inc. and Google Payment Corporation.
Companies: Google Inc.; Google Payment Corporation; Visa Inc.; Visa U.S.A., Inc.; Visa International Service Association; MasterCard Incorporated; MasterCard International Incorporated
News: Antitrust TexasNews