US accuses Visa of debit card monopoly

Published On Sep 24, 2024, 3:21 PM

The US government has accused Visa of maintaining a monopoly in the debit card market by stifling competition. The lawsuit alleges that Visa discouraged companies from using alternative payment networks and engaged in practices that reduced market competition, leading to higher costs for consumers. The Department of Justice's action follows an ongoing investigation that started in 2021 and reflects a more aggressive stance on antitrust issues by the current administration, targeting major corporations to enhance competition.

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Given the allegations against Visa, regulatory scrutiny may increase, potentially impacting its market share and profitability if it faces penalties or is forced to change its business practices. This could lead to a negative market perception and reduced investor confidence in the short term.

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