Supreme Court 'Sidestep' on Credit Cards Not Favorable for Small Business

WASHINGTON – The U.S. Supreme Court decision to let stand a lower-court’s decision in the U.S. Department of Justice (DOJ) case against Visa and MasterCard is not small business friendly, according to one small business organization. The Small Business & Entrepreneurship Council (SBEC) (formerly the Small Business Survival Committee) said the Court’s decision could lead to higher prices for small businesses and undermines the future of joint ventures and strategic alliances in general, initiatives that benefit small firms and consumers alike.

SBEC President & CEO Karen Kerrigan issued the following statement with respect to the Supreme Court decision and what’s at stake for small businesses:

“Small business owners should be extremely concerned about the outcome of this case. Large retailers and American Express are using the courts to attain what they could in the open marketplace. These business on business lawsuits only serve to erode free markets and generate uncertainty, which ultimately undermines competition. In the end, small businesses are the ones who get hurt.

“Antitrust laws are intended to help consumers by protecting competition, not by giving one competitor an advantage over another. With so much choice and competition in the credit card industry, American Express could have adjusted by lowering the merchant fees that small businesses pay. Instead, their stated goal is to raise these fees and force their competitors to do the same.”

SBEC filed a “Friend of the Court” petition with the Independent Community Bankers of America and Card Services for Credits Unions, which urged the Court to hear the case because of its potential negative impact on businesses with respect to their ability to fashion deals that are beneficial to consumers.

SBEC is a national, nonprofit small business advocacy organization with 70,000 members nationwide. This year marks their 10th year of protecting small business and advancing entrepreneurship. For more information, please visit: www.sbecouncil.org. To read a copy of the brief, please visit: http://www.sbsc.org/media/pdf/ICBA_SBSC_CSCU_Amicus.pdf