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DOJ files antitrust lawsuit against Visa over payments monopoly

DOJ files antitrust lawsuit against Visa over payments monopoly

GrafaGrafa2024/09/25 03:30
By:Mahathir Bayena

The United States Department of Justice (DOJ) has initiated an antitrust lawsuit against Visa, accusing the payment giant of monopolising the debit payments sector.

Filed in a New York federal court on September 24, the complaint alleges that Visa uses exclusivity agreements and penalties to stifle competition, maintaining its dominant position in the market.

According to the DOJ, Visa controls 60% of the U.S. debit transaction market, earning the company $7 billion annually in transaction fees.

U.S. 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."

Garland added that merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service.

The lawsuit also claims Visa uses its size and influence to draw potential competitors into partnerships, hindering competition in the payments landscape.

These practices, according to the DOJ, have led to higher costs for consumers, affecting the price of many products and services.

In response to the growing competition from the stablecoin market, Visa has downplayed concerns, stating that data on stablecoin usage is exaggerated.

However, analysts argue that stablecoins, backed by fiat currency, could eventually overtake Visa in international payments.

Sacra co-founder Jan-Erik Asplund noted that "Stablecoins win on convenience" and predicted that they will outpace Visa as a preferred transaction method.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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