US Department of Justice files civil antitrust lawsuit against Visa
The US Department of Justice (DOJ) has filed a civil antitrust lawsuit against Visa over allegations of “monopolisation and other unlawful conduct in debit network markets in violation of Sections 1 and 2 of the Sherman Act”.
US DOJ files civil antitrust lawsuit against Visa
In a press release announcing the lawsuit on 24 September, the DOJ says: “Filed in the US District Court for the Southern District of New York, the complaint alleges that Visa illegally maintains a monopoly over debit network markets by using its dominance to thwart the growth of its existing competitors and prevent others from developing new and innovative alternatives.”
The DOJ alleges that Visa’s “systematic efforts to limit competition for debit transactions have resulted in billions of dollars in additional fees imposed on American consumers and businesses and slowed innovation in the debit payments ecosystem”.
According to the DOJ, over 60% of debit transactions in the US are processed through Visa’s debit network, which it claims allows the firm “to charge over $7 billion in fees each year for processing those transactions”.
Attorney General Merrick B. Garland comments: “We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market.”
“Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything,” Garland adds.
In a statement, Visa’s general counsel Julie Rottenberg says the lawsuit “ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving”.
“This lawsuit is meritless, and we will defend ourselves vigorously,” she says.
The DOJ first opened an investigation into Visa’s US debit practices back in 2021. The payments giant also called off its proposed $5.3 billion merger with Plaid in the same year after the DOJ filed a civil antitrust lawsuit to block the deal in late 2020.
