The U.S. Supreme Court has canceled an upcoming hearing on whether association membership could constitute an antitrust violation in certain instances, dismissing the case after ruling the petitioners' lawyers changed their original argument.

Visa v. Osborn is a case being closely monitored by ASAE and other associations because of an appellate court ruling finding that association membership could constitute an illegal conspiracy under antitrust law. The case stemmed from a lawsuit brought by independent ATM owners against Visa, MasterCard and large banks, alleging the credit card companies had used association rules to improperly set rates for access to their networks. (The court consolidated the case with a similar lawsuit, Visa v. Stoumbos.)

The Supreme Court agreed to hear the case after Visa appealed a decision by the U.S. Court of Appeals for D.C. in favor of the independent ATM operators, setting a Dec. 7 date for oral arguments. However, in a Nov. 17 disposition, the justices concluded Visa's lawyers had changed their argument from their original appeal with the high court. The case was dismissed, allowing the plaintiffs' to continue pursuing their lawsuits in lower court.

The shift in the petitioners' arguments came after Visa made changes to its legal team, according to SCOTUSblog. Visa originally argued against the appellate court's reasoning that membership in a business association could constitute conspiracy. The company's lawyers later altered their argument to claim the credit card networks and their banks should be considered a single entity for legal purposes. The plaintiffs countered that was not the original question the court had been asked to consider, and the justices agreed. http://bit.ly/2gCwnq7

Just where the dismissal leaves the central question about association membership is unclear. In a statement, ASAE CEO John Graham said: "While we understand why Visa v. Osborne case was dismissed, the association community hopes that cases in the future will be distinguished from the Osborn decision because it was derived from a unique set of facts and near-single-purpose associations."

One business group celebrating the decision is the AMT Industry Association, which said in a statement that the ATM fees being imposed by credit card companies and banks hurt consumers.

"This is a huge win for the ATM industry," said David Tente, executive director of ATMIA USA. "(The Supreme Court) decision clears the way for pending antitrust cases to continue, and leaves the door open for future claims that industry stakeholders may wish to pursue." http://bit.ly/2geJXfH

MORE CEO DATELINE

• Casino group sees opportunity in Trump victory
• Railroad association urges halt on train rulemaking
• ASAE head pledges to support diversity after Trump election
• Snowsports association unhappy with trade show shuffle
• AAA forecasts crowded roads for Thanksgiving