TechFlow news, on September 25, according to Cointelegraph, the U.S. Department of Justice (DOJ) has filed an antitrust lawsuit against payment giant Visa, accusing it of monopolizing debit card payments. A complaint filed yesterday in a New York federal court alleges that Visa uses exclusive agreements and threats of penalties against vendors to block competitors from encroaching on its market share. U.S. Attorney General Merrick Garland said in a statement, "We allege that Visa has unlawfully amassed the power to charge fees far exceeding what it could charge in a competitive market." The report states that Visa holds a 60% market share in U.S. debit card transactions, generating $7 billion in revenue annually just from transaction fees.
The complaint also alleges that Visa leverages its market scale and corporate holdings to entice potential rivals into partnerships. This reportedly aligns with the DOJ's claim that Visa’s practices lead to higher prices for consumers even when alternatives enter the market.
