V - Visa And Mastercard Face Potential Setback As New York Judge Indicates Disapproval Of Proposed $30B Antitrust Settlement | Benzinga
The proposed $30 billion antitrust settlement by Visa Inc. (NYSE:V) and Mastercard Inc. (NYSE:MA) is facing a potential setback as a New York judge has indicated that she may not approve the agreement.
What Happened: U.S. District Judge Margo Brodie, during a hearing on Thursday, signaled that she is likely to reject the proposed settlement, Reuters reported. The settlement, announced on Mar. 26, aimed to resolve the majority of claims in a nationwide litigation that began in 2005.
The settlement was designed to limit credit and debit card fees for merchants, with small businesses accounting for over 90% of the settling merchants. However, critics argue that the proposed settlement offers little or no benefit to merchants.
Visa and Mastercard expressed their disappointment at the judge’s stance. Mastercard described the settlement as a “fair resolution” that would provide businesses with more flexibility in managing card transactions. Meanwhile, Visa ...