scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 1,328
Duality Monopoly and Government Failure Duality or illegal business practices which one contributed to Visa and MasterCard attaining over seventy-five percent of market shares Who is really to blame for Visa and MasterCard obtaining the ability to monopolize the market the government member banks or Visa and MasterCard collaboration The Department of Justice investigation will bring forth many issues to closely review and consider Reviewing the courts transcript released by the Department of Justice on the governments antitrust case investigation United States of America verses Visa International and MasterCard International Incorporated reveals how the government may have been a major contributor to Visa and MasterCard effectively obtaining market power of the general-purpose card networks The government should have evaluated the Worthens suit more closely When the Worthen Bank of Arkansas a Visa member bank wanted to issue MasterCards general-purpose cards Visa adopted Bylaw 216 prohibiting members bank from issuing any other network card Worthen sued Visa stating the Bylaw 216 violated section 1 of the Sherman Act The courts agreed with Worthen stating bylaw 216 in itself was per se a violation of the Sherman Act and ruled judgment in Worthens behalf However the Eighth Circuit court reversed the decision and sent the case for retrial using the rule of reason as the foundation While awaiting trail Visa wanted to impose a more restrictive bylaw so they asked the Department of Justice to review their new proposed Business Review letter The new policy would not only prohibit members from issuing other general purpose cards but also prohibit banks from providing card acceptance service for any other card presently in existence or card that may develop in the future as well The Department of Justice stated it could support the more restrictive bylaw of Visa member banking only issue Visa cards but it was concerned about the restriction of banks providing card acceptance services to merchants for both networks The Department of Justice believed
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA