Biden-Harris DOJ sues Visa over alleged debit card monopoly

"We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market."

ADVERTISEMENT

"We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market."

ADVERTISEMENT

The Department of Justice (DOJ) announced Tuesday that it has filed a lawsuit against Visa, alleging that the company holds an illegal monopoly over the US debit card market, Fox Business reported. The DOJ alleged that more than 60 percent of debit card transactions are processed by Visa, which charges over $7 billion in fees for processing transactions.

The DOJ also claimed Visa was able to monopolize these transactions by illegally tamping down the competition. The DOJ pointed to how Visa insists upon exclusive arrangements with merchants and banks while it "insulates itself from competition, and smothers smaller, lower-priced competitors."

"We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market," Attorney General Merrick Garland said in a statement. "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."

The DOJ's lawsuit alleged that Visa "induces would-be competitors to become partners instead of entering the market as competitors by offering generous monetary incentives and threatening punitive additional fees” and said the company engages in a "deliberate and reinforcing course of conduct to cut off competition and prevent rivals from gaining the scale, share, and data necessary to compete for customers' business."

The DOJ compared Visa’s marketing tactics to building an "enormous moat" to protect its commerce. Visa has rejected the accusations, with Visa General Counsel Julie Rotenberg saying in a statement to Fox Business: "Anyone who has bought something online, or checked out at a store, knows there is an ever-expanding universe of companies offering new ways to pay for goods and services."

"Today's lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving. When businesses and consumers choose Visa, it is because of our secure and reliable network, world-class fraud protection, and the value we provide," Rotenberg continued.

"We are proud of the payments network we have built, the innovation we advance, and the economic opportunity we enable. This lawsuit is meritless, and we will defend ourselves vigorously."

ADVERTISEMENT
ADVERTISEMENT
Sign in to comment

Comments

Powered by The Post Millennial CMS™ Comments

Join and support independent free thinkers!

We’re independent and can’t be cancelled. The establishment media is increasingly dedicated to divisive cancel culture, corporate wokeism, and political correctness, all while covering up corruption from the corridors of power. The need for fact-based journalism and thoughtful analysis has never been greater. When you support The Post Millennial, you support freedom of the press at a time when it's under direct attack. Join the ranks of independent, free thinkers by supporting us today for as little as $1.

Support The Post Millennial

Remind me next month

To find out what personal data we collect and how we use it, please visit our Privacy Policy

ADVERTISEMENT
ADVERTISEMENT
By signing up you agree to our Terms of Use and Privacy Policy
ADVERTISEMENT
© 2024 The Post Millennial, Privacy Policy | Do Not Sell My Personal Information