Disney Settles Antitrust Lawsuit Against Visa and Mastercard
If you’ve been following along with MickeyBlog, you’ll know that last week, Disney sued Visa and Mastercard where they accused both credit card giants of charging overinflated processing fees.
According to a recent piece in The Hollywood Reporter, Disney filed a court document yesterday dismissing the suit. It is believed a deal was struck though details released.
According to THR, at the center of Disney’s suit was the belove that credit card companies are charging inflated fees for every transaction to cover costs associated with processing and authorizing payments. Merchants have long argued that Visa and Mastercard are engaged in price-fixing their fees which leads to higher prices for customers. The two companies together account for 80% of debit purchases.
“Visa and MasterCard and their members have obtained and maintained market power in the market for merchant acceptance of credit cards and the market for merchant acceptance of debit cards in the United States,” writes Sanford Litvack, representing Disney, in the complaint. “The exercise of this market power has led merchants to pay excessive interchange and network fees, injuring both Plaintiff and consumers (including cardholders) through higher costs and decreased consumer welfare.”
The lawsuit filed by Disney comes after the company opted out of a $6 billion settlement which included an agreement to reduce the charge of processing fees on transactions for eight months. Other retailers also went the Disney route opting not to be a part of the settlement in order to negotiate better terms for the company.
This is a story that we’ll continue to follow closely. Readers are encouraged to keep following along with MickeyBlog for further Walt Disney World news and updates!
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Source: The Hollywood Reporter