The U.S. Department of Justice (DOJ) filed a lawsuit Tuesday, accusing Visa Inc. of unlawfully maintaining its monopoly in the U.S. debit card market. The DOJ claims Visa has used its dominant position to block competition from emerging rivals, ensuring its control over 60% of all U.S. debit transactions and charging merchants over $7 billion in fees annually.
DOJ Accuses Visa Of Monopolizing Debit Card Market : Allegations of Anti-Competitive Practices
According to the lawsuit, filed in the Southern District of New York, Visa allegedly penalizes merchants and banks that process payments through alternative networks. Additionally, Visa is accused of partnering with potential competitors instead of competing with them, further cementing its dominance.
Attorney General Merrick Garland stated that Visa’s monopoly leads to inflated fees, which are ultimately passed on to consumers. “Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service,” Garland said, noting that the conduct affects “the price of nearly everything.”
Biden Administration’s Antitrust Focus
The lawsuit is part of the Biden administration’s broader push to address high prices through antitrust enforcement. The DOJ’s action aims to dismantle practices that stifle competition, reduce costs, and protect consumers.
