DOJ: Visa debit monopoly impacts price of ‘nearly everything’

The Justice Department accused Visa of having an amerciable monopoly implicit debit payments successful a caller lawsuit.

The company, which operates the biggest payments web successful the world, uses “exclusionary” agreements to smother smaller companies, the section said.

The civilian antitrust suit, which was filed successful the U.S. District Court for the Southern District of New York, alleges “monopolization” and different unlawful behaviour that had led to American consumers and merchants paying billions of dollars successful other fees.

“We allege that Visa has unlawfully amassed the powerfulness to extract fees that acold transcend what it could complaint successful a competitory market,” Attorney General Merrick Garland said.

“Merchants and banks walk on those costs to consumers, either by raising prices oregon reducing prime oregon service,” Garland said. “As a result, Visa’s unlawful behaviour affects not conscionable the terms of 1 happening — but the terms of astir everything.”

Visa accounts for astir 60% of debit transactions successful the U.S. run, starring to much than $7 cardinal successful processing fees.

Julie Rottenberg, Visa’s wide counsel, characterized the suit arsenic “meritless” and said the institution volition support itself “vigorously.”

Visa’s attempted $5.3 cardinal acquisition of online outgo exertion institution Plaid, was blocked by the Justice Department successful 2020 implicit concerns it would pb to a deficiency of competition.