The U.S. Department of Justice (DOJ) has filed a lawsuit against Visa, accusing the payment giant of antitrust violations and suppressing competition in the debit market. Visa, which processes more than 60% of U.S. debit transactions and earns $7 billion annually in fees, allegedly uses agreements with merchants, card issuers, and competitors to maintain its dominance.
The lawsuit is part of the Biden administration’s broader effort to reduce consumer prices ahead of the 2024 presidential election. Attorney General Merrick Garland stated, “Visa’s unlawful conduct affects the price of nearly everything,” as merchants pass on network fees to consumers.
The DOJ’s antitrust division began investigating Visa in 2021, the same year it blocked Visa’s acquisition of fintech firm Plaid. The lawsuit seeks to restore competition in debit payment processing, both online and in-store.
Visa and Mastercard have faced legal challenges for decades, including a $5.6 billion settlement in 2019 over similar anticompetitive practices.