DOJ's Visa antitrust lawsuit alleges debit card company monopoly
USA TodaySEP 25 2024
The US Department of Justice (DOJ) has filed a lawsuit against Visa, the San Francisco-based payment network, alleging it violated antitrust law by illegally stifling competition in the debit card market.
The lawsuit, filed in federal court in New York on Tuesday, claims Visa abused its dominant position to penalize merchants for using alternative payment networks and prevent potential rivals from entering the market.
As Visa earns an incremental fee from transactions routed over its network, the DOJ says that its alleged anticompetitive and monopolistic behavior cost billions of dollars to consumers and businesses, including merchants and banks.
Visa used illegal means to thwart competition and collected fees far exceeding what it could charge in a competitive market. Additionally, its unlawful conduct imposed hidden costs on American consumers and businesses. The court must rule Visa is a monopoly and prohibit its anticompetitive practices. This is necessary to restore fair pricing structures and reduce corporate middlemen's influence on competition.
Visa dominates the payments industry because, unlike its rivals, it has built significant consumer trust over the years, invests heavily in technology and security, and is popular with the masses. This lawsuit holds no ground as it ignores the fact that Visa is just one of many competitors in the ever-growing debit card space, and controlling 60% of the market doesn't constitute a monopoly.