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Mastercard Settles Amex Suit |
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MasterCard Inc.has agreed to pay as much as $1.8 billion to settle a complaint that it blocked banks from issuing American Express cards.
The agreement will cost MasterCard about $1 billion over three years after taxes, the Purchase, New York-based company said today in a statement. American Express said the payments will act as a cushion against borrower defaults, which are likely to be more than expected.
American Express sued larger competitors MasterCard and Visa Inc. in November 2004 after the U.S. Supreme Court ruled they violated antitrust laws by preventing member banks from offering rival cards.
Last year, Visa settled its case with AmEx for $2.25 billion, and both Visa and Mastercard still face a 2004 suit by Discover, which reportedly seeks a combined $6 billion from the card companies.
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