WASHINGTON (ChatnewsTV) — The U.S. Department of Justice has filed a civil antitrust lawsuit against Visa Inc., accusing the financial services giant of monopolizing the debit card market. The suit, filed on Tuesday in the U.S. District Court for the Southern District of New York, alleges that Visa has engaged in unlawful practices to maintain its dominance, in violation of the Sherman Antitrust Act.
The Justice Department claims Visa has used its overwhelming market power to stifle competition, preventing other companies from offering innovative alternatives in the debit card network space. According to the complaint, Visa’s practices have stifled the growth of existing competitors while discouraging the development of new debit network options.
“Visa’s conduct harms not just competing networks but also consumers and businesses that rely on competitive markets for debit services,” said Principal Deputy Associate Attorney General Benjamin C. Mizer in a statement. “The practices we allege today weaken competition, raise prices, and stifle innovation in a vital part of the U.S. economy.”
The lawsuit focuses on Visa’s dominance in the U.S. debit market, where it controls a significant share of transactions. Attorney General Merrick B. Garland echoed the Justice Department’s concerns, emphasizing the far-reaching consequences of monopolistic practices.
“The Justice Department will not tolerate the abuse of market power to harm competition, especially when it affects critical financial services that Americans rely on every day,” Garland said in prepared remarks. “Today’s lawsuit is about protecting consumers and ensuring that companies play by the rules of fair competition.”
Visa, one of the largest payment processors in the world, has faced growing scrutiny in recent years over its competitive tactics. The company has yet to respond to the lawsuit, though similar cases have been closely watched by industry experts, given the implications for both financial institutions and consumers.
Principal Deputy Assistant Attorney General Doha Mekki further underscored the Justice Department’s commitment to challenging anti-competitive behavior. “No company, no matter how powerful, is above the law,” she said. “We are determined to restore competition in this critical market.”
