Trello Outage Disrupts Users as Access Issues Hit Atlassian’s Work Management Platform 
SpaceX Insider Share Sale Values Company Near $800 Billion Amid IPO Speculation 
United Airlines Tokyo-Bound Flight Returns to Dulles After Engine Failure 
Nvidia Develops New Location-Verification Technology for AI Chips 
Apple App Store Injunction Largely Upheld as Appeals Court Rules on Epic Games Case 
Intel’s Testing of China-Linked Chipmaking Tools Raises U.S. National Security Concerns 
Fortescue Expands Copper Portfolio With Full Takeover of Alta Copper 
SoftBank Shares Slide as Oracle’s AI Spending Plans Fuel Market Jitters 
Coca-Cola’s Costa Coffee Sale Faces Uncertainty as Talks With TDR Capital Hit Snag 
Westpac Director Peter Nash Avoids Major Investor Backlash Amid ASX Scrutiny 
Korea Zinc Plans $6.78 Billion U.S. Smelter Investment With Government Partnership 
Woolworths Faces Fresh Class Action Over Alleged Underpayments, Shares Slide 
SpaceX Begins IPO Preparations as Wall Street Banks Line Up for Advisory Roles 
California Jury Awards $40 Million in Johnson & Johnson Talc Cancer Lawsuit 
SoftBank Eyes Switch Inc as It Pushes Deeper Into AI Data Center Expansion 
SK Hynix Considers U.S. ADR Listing to Boost Shareholder Value Amid Rising AI Chip Demand 
Visa and Mastercard reached a monumental $30 billion settlement aimed at restricting credit and debit card fees for merchants. This action is expected to result in potential consumer savings through reduced prices.
Antitrust Settlement Significance
CNBC reported that this antitrust settlement, considered one of the largest in U.S. history, is pending court approval. It is poised to address claims dating back to 2005 and is a significant step in the ongoing litigation.
As part of the settlement, Visa and Mastercard will lower interchange rates by four basis points in the U.S. for three years and cap rates for the subsequent five years. Additionally, both card networks will eliminate anti-steering provisions.
Impact on Merchants
According to Reuters, the fee reductions and caps alone amount to nearly $29.79 billion, benefiting various small businesses. According to Visa estimates, more than 90% of the settling merchants are small businesses.
Nobel Prize-winning economist Joseph Stiglitz, engaged by the merchants as an expert, highlighted the positive implications of the settlement. Stiglitz emphasized that the agreement enhances merchants' ability to compete on prices.
Consumer Benefits
Stiglitz believes that increased competition among merchants will lead to cost savings being passed on to customers through lower prices. This outcome could translate into substantial savings for consumers.
Previously, the federal appeals court in Manhattan upheld a separate $5.6 billion class-action settlement by Visa and Mastercard, encompassing around 12 million merchants. However, this settlement did not address the specific fees that could be imposed by the card networks and did not cover all retailers.
Despite the potential benefits outlined by experts and the substantial figures involved, the settlement has not been without its critics. Some argue that while the concessions are a step in the right direction, they may not go far enough in fostering long-term competitive parity in processing fees. Detractors point to the complex nature of credit card fee structures and suggest that more transparent pricing models are needed to level the playing field for all merchants.
Photo: CardMapr.nl/Unsplash
