US Department of Justice accuses Visa of illegally monopolizing debit card market

The US Department of Justice has filed a lawsuit accusing Visa of illegally monopolizing the debit card market.

The department alleges that Visa abused its dominant position in the debit card market for more than a decade to force businesses to use Visa’s network instead of competitors’ networks, and to prevent new alternatives from entering the market.

“We allege that Visa has illegally exploited its market power to charge fees far in excess of what it would charge in a competitive market,” Attorney General Merrick Garland said in a statement.

He added that merchants and banks pass these costs on to consumers, either by raising prices or reducing quality. As a result, Visa’s illegal behavior affects more than just the price of one thing (debit card fees), it affects the price of almost everything.

“Anyone who has bought something online, or paid in a store, knows that there is a vast universe of companies offering new ways to pay for goods and services,” Julie Rotenberg, Visa’s general counsel, said in a statement.

“Today’s lawsuit ignores the fact that Visa is just one of many competitors in a debit card arena that is growing, seeing new entrants and even thriving businesses,” she added.