On September 25, the U.S. Department of Justice (DOJ) filed an antitrust lawsuit against payment giant Visa, accusing it of monopolizing debit card payments. A complaint submitted to the federal court in New York on September 24 alleges that Visa employs exclusive agreements and threats of penalties against suppliers to prevent competitors from encroaching on its market share. Reports indicate that Visa holds a 60% market share in the U.S. debit card transaction sector, generating $7 billion in revenue solely from transaction fees. The complaint also asserts that Visa leverages its market size and corporate holdings to entice potential competitors into partnerships. This is said to align with the DOJ’s allegations that Visa’s practices would lead to higher prices for consumers, even with alternatives entering the market.
