NEW YORK -- The American Booksellers Association announced yesterday that it is joining the National Association of Convenience Stores, the National Retail Federation, the Retail Industry Leaders Association, and other merchant groups opposing the proposed $7.25 billion settlement of a federal antitrust lawsuit over Visa and MasterCard credit card swipe fees.
“The ABA Board of Directors has determined that the proposed swipe fee settlement is not in the best interest of independent booksellers,” said Oren Teicher, head of the group. “Because the proposed settlement is one-sided and preserves MasterCard and Visa’s anticompetitive practices, ABA is urging the class plaintiffs in the case to reject the proposed settlement. Ultimately, we believe that the adverse long-term effects of this settlement far outweigh any short-term monetary gain it might bring retailers.”
The growing opposition comes as a group of merchants is scheduled to submit the final details of the landmark antitrust settlement to the federal court today. After that, merchants will have 30 days to write to the court, which must approve the deal, to object to the proposed settlement.
The booksellers said the $7.25 billion settlement amounts to less than two months’ worth of swipe fees, based on the estimated $50 billion in swipe fees collected by the credit card companies on an annual basis.
