US govt files lawsuit against Visa over alleged monopoly in debit card market

25th Sep 2024 09:39

(Sharecast News) - The US Justice Department has started an antitrust lawsuit against Visa, accusing it of running a monopoly in the debit card market.

Visa was accused of abusing its dominant position in the debit card market for more than a decade, forcing businesses to use its network instead of those run by competitors. The DoJ also alleges that the payments giant stopped new entrants to the market.

"Collectively ... Visa's systematic efforts to limit competition for debit transactions have resulted in significant additional fees imposed on American consumers and businesses and slowed innovation in the debit payments ecosystem," the complaint said.

US Attorney General Merrick Garland said Visa had "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."

In response, Visa said the lawsuit had no merit and it would defend itself in court. The company owns and controls the largest debit card processing network in the US, processing more than 60% of US debit card transactions.

Reporting by Frank Prenesti for Sharecast.com