business news in context, analysis with attitude

Discover Financial Services’s credit card division is filing a lawsuit against Visa and MasterCard, charging that the two competing card companies violate antitrust laws and seeking compensation for lost revenues.

The suit is being filed to build on a US Supreme Court ruling that Visa and MasterCard are anti-competitive because they have prevented member banks from issuing cards on rival networks such as Discover and American Express.

"A new era of greater choice for U.S. consumer and financial institutions has begun,'' American Express Co. Chairman and Chief Executive Kenneth Chenault said in a statement. However, Visa’s attorneys have said that the ruling will not lower prices for consumers.
KC's View: