Justice Dept. Plans Antitrust Lawsuit Against Visa

Published On Sep 23, 2024, 7:07 PM

The U.S. Justice Department is preparing to sue Visa for allegedly using illegal practices to disadvantage competing payment processors. The upcoming lawsuit, expected to be filed soon, stems from a lengthy investigation looking into Visa's agreements with financial technology firms. This is not Visa's first brush with regulators regarding anti-competitive behavior; in the past, they have faced scrutiny from the Justice Department over merger deals aimed at eliminating competition.

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Given the regulatory scrutiny Visa is facing and the potential negative implications of a lawsuit, investor sentiment may turn negative in the short term. Legal challenges can create uncertainty around financial performance and market positioning.

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