In the June 2023 e-Competitions Bulletin of Concurrences, Managing Directors Ling-Ling Ang and Alan Grant and former Consultant Peter Traber examine the findings of their white paper “Analysis of the Potential Impact of the Credit Card Competition Act of 2023.” The proposed legislation seeks to increase competition in the credit card industry by limiting network exclusivity and giving merchants more control over transaction routing. While the intended goal is to lower costs, the discussion explores how these changes could also reshape incentives for issuers, merchants, and consumers.

The analysis highlights key considerations from the study, including how shifts in interchange fees and issuer constraints could impact pricing structures, consumer rewards, and overall market dynamics. By framing these findings within a broader regulatory and economic context, the discussion raises important questions about the potential long-term effects of the legislation.