Discover settlement with Visa and MasterCard

CRA assisted counsel for Discover Financial Services in a lawsuit seeking damages from Visa Inc. and MasterCard Inc. Discover filed its damages suit against Visa and MasterCard in October 2004, following the conclusion of a Department of Justice lawsuit that determined Visa and MasterCard violated antitrust laws by barring banks from issuing cards on the Discover Network. CRA’s team analyzed the anti-competitive effects of Visa and MasterCard rules and computed damages. CRA undertook economic analyses of market definition, market power, and the impacts of Visa’s and MasterCard’s rules on competition in the provision of credit and debit card network services. Our analysis contributed to determining the $2.75 billion settlement amount with Visa and MasterCard – reported to be the third largest antitrust settlement in US history.