DOJ sues Visa over debit card market monopoly

Published On Sep 24, 2024, 2:11 PM

The Justice Department has filed a lawsuit against Visa, accusing the company of maintaining an illegal monopoly in the U.S. debit card market. The lawsuit claims that Visa's dominance, which currently processes over 60% of debit card transactions, allows it to impose high fees on merchants totaling more than $7 billion a year. Visa is said to engage in practices that prevent competition, such as exclusionary agreements with merchants and banks, effectively locking out potential rivals. This conduct, according to Attorney General Merrick Garland, leads to higher costs for consumers due to inflated prices and reduced quality or services.

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Given the legal troubles Visa is facing, potential regulatory changes could negatively impact its operating model. Additionally, the public scrutiny can lead to reputational damage, which might cause a decrease in stock confidence among investors.

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