Biden-Harris DOJ sues Visa over alleged debit card monopoly

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."