Amex Loses Appeal in Swipe Fee Antitrust Lawsuit

American Express has lost its appeal to compel arbitration in an antitrust lawsuit filed by thousands of small businesses. In a recent ruling, the US Court of Appeals for the First Circuit upheld a lower court's decision denying Amex's motion to stay litigation and compel arbitration. The dispute revolves around American Express's anti-steering rules, which prohibit merchants from encouraging customers to use payment cards that cost less in swipe fees.

The appellate court found that the district court did not abuse its discretion when it denied Amex's motion. This decision was based on the plaintiff's claim that they had not acted with 'unclean hands' - a legal concept implying that a party has engaged in unfair or dishonest conduct. The ruling allows the antitrust lawsuit against American Express to proceed.

The outcome is significant for small businesses, which have claimed that Amex's anti-steering rules prevented them from using cheaper payment options and ultimately increased their costs. The case highlights ongoing debates over swipe fees and the influence of credit card companies on merchant pricing.