Less than a week after the indictment, Disney settled an antitrust lawsuit against Visa and Mastercard on Wednesday, accusing the credit card companies of charging inflated processing fees.
According to a court document, Disney decided to dismiss the lawsuit. The terms of the deal have not been disclosed.
The lawsuit revolved around interchange fees, which credit card companies charge for each transaction to cover costs associated with processing and authorizing payments. Merchants have long argued that Visa and Mastercard’s hold on the market allows them to set those fees, ultimately leading to higher prices for customers.
“Visa and MasterCard and their members have gained and maintained market power in the credit card merchant acceptance market and debit card merchant acceptance market in the United States,” Disney’s representative Sanford Litvack wrote in the complaint. “The exercise of this market power has resulted in merchants paying excessive interchange and network fees, harming both the claimant and consumers (including cardholders) through increased costs and reduced consumer welfare.”
According to the complaint, the two companies account for more than 80 percent of all debit purchases.
Disney has filed a lawsuit after it opted out of a $6 billion settlement, including an agreement to reduce transaction processing costs for eight months, in a nearly identical class action lawsuit filed by retailers against Visa. , Mastercard and major banks. Other major retailers also chose not to participate in the deal to get better terms for themselves. In February, Amazon resolved a months-long standoff with Visa over interchange fees that threatened to ban customers from using Visa credit cards on the online retailer’s websites.
Disney and his lawyers declined to comment. Visa and Mastercard have not responded to requests for comment.