The US Department of Justice (DOJ) is suing payments giant Visa for allegedly maintaining an illegal market monopoly to control smaller competitors.
In a press release, the DOJ said it has filed a civil antitrust lawsuit against Visa, accusing the payments company of illegally maintaining dominance in the debit network markets.
Antitrust laws are designed to protect consumers from predatory business behavior by limiting the market influence of any company.
According to the DOJ, Visa’s monopoly on the debit network markets stifles competitors and thwarts efforts to develop new and innovative technologies.
The DOJ also claims that Visa’s success in isolating competition allows the company to control more than half of debit card transactions in the US.
“According to the complaint, more than 60% of debit transactions in the United States pass through Visa’s debit network, allowing the company to charge more than $7 billion annually in fees for processing those transactions…
Merchants and banks pass these costs on to consumers, either by raising prices or reducing quality or service. As a result, Visa’s unlawful behavior affects not just the price of one thing, but the price of almost everything.”
The Justice Department also accuses Visa of anticompetitive behavior that imposes enormous costs on consumers, merchants and the U.S. economy.
“Visa’s systematic efforts to limit competition in debit transactions have resulted in billions of dollars in additional fees imposed on U.S. consumers and businesses and slowed innovation in the debit payments ecosystem. Through this lawsuit, the Department of Justice is seeking to restore competition in this vital market on behalf of the American public.”
Visa’s general counsel, Julie Rottenberg, reportedly says the lawsuit has no merit and that the company will aggressively defend itself in court.
“When businesses and consumers choose Visa, it is because of our secure and reliable network, world-class fraud protection and the value we provide.”
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us further XFacebook and Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney