Statement By Discover Financial Services On U.S. Supreme Court Decision To Deny Visa And Mastercard Appeal In Antitrust Case
October 4, 2004
RIVERWOODS, Illinois – October 4, 2004 – David
W. Nelms, Chairman and Chief Executive Officer
of Discover Financial Services, a business unit
of Morgan Stanley (NYSE:MWD), issued the following
statement regarding today's decision by the U.S.
Supreme Court to deny an appeal by Visa and MasterCard
in an important antitrust case regarding the Visa
and MasterCard rules and policies that prevented
virtually all U.S. financial institutions from
doing business with competing networks:
“This
is a victory for consumers, merchants and financial
institutions. Today's decision frees financial
institutions to partner with Discover Financial
Services, which will provide more choice and value
to consumers and merchants.
“Discover
Financial Services has been in advanced discussions
with potential partners regarding issuance of
cards on the Discover Network. Now that Visa's
and MasterCard's anticompetitive bylaws have finally
been struck down, we are eager to move forward
with these new partnerships.”
A more
competitive marketplace that includes the Discover
Network is good for financial institutions, which
for the first time will enjoy the benefits of
network competition, Nelms said. The ruling is
also good for merchants because more competition
will mean more volume on Discover's low cost network,
with the ultimate winners being consumers who
will enjoy the benefits of greater choice in a
more competitive market, he added. Nelms said
the Discover Network, comprised of more than 4
million merchant and cash access locations, is
uniquely qualified to deliver these benefits because
it is the most efficient and flexible network.
About Discover Financial Services
Discover
Financial Services, a business unit of Morgan
Stanley (NYSE:MWD), operates the Discover Card
and the Discover Network for its more than 50
million Cardmembers. The Discover Network is
the largest proprietary credit card network in
the United States with more than 4 million merchant
and cash access locations. For more information
visit www.discovercard.com or www.discovernetwork.com.