Amex 'anti-competitive' but ruling may not help consumers

New York

LAST week, a federal judge handed down a major ruling against American Express, deciding that the brand-name card issuer had engaged in anti-competitive practices for more than a decade.

The court ruled that a part of American Express' contract with merchants known as a "non-discrimination provision" had led to less competition, not more, and pushed consumer prices higher. That clause was intended to make merchants treat all credit card holders similarly without favouring one card company over another.

Because American Express charges merchants a higher percentage of each sale than its compe…