US Department of Justice Sues Visa for Alleged Monopoly in Debit Card Market

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The US Department of Justice (DOJ) has filed an antitrust lawsuit against Visa, accusing the company of illegally maintaining a monopoly over debit card networks in the United States. The lawsuit, submitted to a federal court in New York, alleges that Visa’s monopolistic practices have led to billions of dollars in excess fees for consumers and businesses, while stifling innovation in the debit payments sector.

Attorney General Merrick Garland stated, “We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market.” The DOJ claims that Visa charges approximately $8 billion annually in network fees on US debit transactions, and the company processes $12.3 trillion in global payment volume.

The lawsuit also contends that Visa imposes exclusionary agreements on merchants and banks, penalizing those who use alternative networks, and prevents competition from fintech companies by forming partnerships with potential rivals. These tactics, according to the DOJ, have created an “enormous moat” around Visa’s business, enabling the company to maintain high profits.

In 2022, Visa reported a global operating income of $18.8 billion with a 64 percent operating margin, while its North American operations posted an 83 percent margin.

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