Walmart opposes Visa-Mastercard antitrust settlement
Walmart and other major U.S. retailers are urging a federal judge to reject a proposed antitrust settlement with Visa and Mastercard, arguing it offers little relief and allows the card companies to continue charging high fees.
The settlement, announced in November, would end two decades of litigation and reduce credit card “swipe” fees by just 0.1 percentage point for five years. Walmart criticized the deal for forcing large merchants to give up antitrust claims for eight years without securing meaningful reforms, such as the rule requiring merchants to accept all Visa and Mastercard cards if they accept any, News.Az reports, citing Reuters.
Industry groups including the National Retail Federation warned the settlement provides “illusory reforms” and could reward lawyers $206 million in legal fees, while freezing out organizations representing $2.7 trillion in annual sales.
Visa and Mastercard defended the agreement, stating it offers flexibility and relief to merchants of all sizes. Retailers opposing the deal argue it could also jeopardize ongoing U.S. Justice Department and private lawsuits concerning alleged debit card monopolization.
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