Amex Loses Appeal to Arbitrate Antitrust Claims Over Swipe Fee Rules

American Express has lost its appeal to force arbitration in an antitrust lawsuit filed by thousands of small businesses. The US Court of Appeals for the First Circuit ruled on Wednesday that American Express's anti-steering rules, which prohibit merchants from encouraging customers to use cheaper payment options, are not valid grounds for arbitration.

The court found that the district court did not abuse its discretion in denying American Express's motion to stay litigation and compel arbitration. This decision is significant because it allows the lawsuit to proceed and could potentially lead to changes in how payment card companies operate.

The lawsuit, filed by 5-Star General Store and thousands of other small businesses, claims that American Express's anti-steering rules prevented them from using cheaper payment options, resulting in higher fees. The court's decision is a victory for these merchants, who can now continue to litigate their claims against American Express.