Judge rejects multibillion Visa, Mastercard settlement in swipe fee case

Core Viewpoint - A federal judge rejected a $30 billion antitrust settlement between Visa and Mastercard, which aimed to limit fees charged to merchants, indicating a potential need for renegotiation or trial [1]. Group 1: Settlement Details - The proposed settlement was intended to resolve litigation dating back to 2005 regarding swipe fees, which typically range from 1.5% to 3.5% per transaction, totaling approximately $72 billion in 2023 [4]. - Visa and Mastercard had agreed to cap rates for five years and remove anti-steering provisions, allowing merchants more discretion to offer discounts or impose surcharges [6]. Group 2: Opposition and Reactions - The settlement faced opposition from many merchants and trade groups, including the National Retail Federation, which argued it would not adequately address anticompetitive practices [3]. - Visa expressed disappointment over the court's stance and emphasized the importance of continued engagement with merchants [3]. Group 3: Implications of the Decision - The judge's decision may compel Visa and Mastercard to negotiate a more favorable agreement for merchants or proceed to trial, which carries uncertain outcomes [1]. - The ruling does not affect a previous $5.6 billion settlement related to swipe fees involving Visa, Mastercard, and approximately 12 million merchants [7].