MasterCard "welcomes" dismissal of antitrust suit
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MasterCard International said on Thursday it welcomed a U.S. appeals court's dismissal of an antitrust lawsuit by a group of merchants claiming that the company, Visa USA and three banks had conspired to set fees charged to businesses for credit card sales.
The ruling by the 9th U.S. Circuit Court of Appeals upholds a San Francisco federal judge's 2005 dismissal of the case led by hair salon operator Sheri Kendall and James Maser, who operated a restaurant in Alameda County.
MasterCard General Counsel Noah Hanft said in a statement that the company "welcomed" the appellate ruling on March 7.
"No U.S. court has found interchange to be illegal," he said, referring to the fees charged among card association member banks.
The plaintiffs' attorney, Richard Archer, had no comment on the ruling.
The 9th U.S. Circuit Court of Appeals ruled that the merchants had failed to present facts to support claims of a conspiracy among the credit card companies and Bank of America Corp, Wells Fargo & Co and U.S. Bancorp.
The merchants had accused the card associations of fixing prices on "merchant discount fees," which are transaction fees between merchants and banks, and interchange fees.
The court dismissed the case without leave to amend, which means the merchants cannot refile the case.
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