In the biggest case for loyalty programs since Northwest v. Ginsberg, the Supreme Court has agreed to hear Ohio v. American Express, reviving an anti-trust case brought by retailers and 11 states which argued that American Express violates anti-trust rules in its merchant agreements.
At issue is whether benefits to consumers — like rewards and credit card protections — count when determining whether the market is competitive (do we look at both sides of a two-sided market, or only the merchant-network relationship)?