The U.S. Department of Justice has filed a civil antitrust lawsuit against Visa, accusing the company of monopolizing debit network markets in violation of Sections 1 and 2 of the Sherman Act. The complaint, filed in the U.S. District Court for the Southern District of New York, alleges that Visa’s dominance in the debit network markets has allowed it to maintain a monopoly through exclusionary and anticompetitive conduct, undermining choice and innovation in payment systems.
According to the complaint, Visa controls over 60% of debit transactions in the United States, generating more than $7 billion in fees annually from processing these transactions. The Justice Department claims Visa illegally uses its dominance to stifle competition by imposing restrictive agreements on merchants and banks, penalizing them for using alternative debit networks. These practices allegedly protect Visa’s market position and prevent the growth of 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,” said Attorney General Merrick B. Garland. “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 Justice Department’s complaint outlines Visa’s efforts to insulate itself from competition by coercing would-be competitors into becoming partners, offering financial incentives and threatening punitive fees. The department argues that Visa’s actions have led to billions of dollars in additional fees for American consumers and businesses, while also slowing innovation in the debit payments ecosystem.
Principal Deputy Associate Attorney General Benjamin C. Mizer emphasized the harm caused by Visa’s conduct: “Anticompetitive conduct by corporations like Visa leaves the American people and our entire economy worse off. Today’s action against Visa reminds those who would stifle competition rather than competing on price or investing in innovation that the Justice Department will never hesitate to enforce the law on behalf of the American people.”
Visa’s position as a dominant player in both the merchant and consumer sides of the debit market gives it substantial leverage. The complaint highlights that Visa’s exclusionary agreements impose large penalties on merchants and banks that do not commit to using Visa’s payment rails for nearly all debit transactions. This setup forces merchants to rely heavily on Visa, even when lower-cost alternatives are available.
The Justice Department also pointed to Visa’s tactics against technology companies and fintech startups. Internal Visa documents show that the company viewed these new market entrants as potential threats. Instead of competing with them, Visa sought agreements to turn these potential competitors into partners. In 2020, the Justice Department filed an antitrust lawsuit to block Visa’s $5.3 billion acquisition of Plaid, a technology company that was developing disruptive online debit payment options. That merger was ultimately abandoned.
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