The Ministry of Justice of the United States has filed a lawsuit against Visa for alleged antitrust violations in the payment network of debit cards in the United States.
According to the Ministry’s complaint, 60% of debit card transactions in the United States are processed through Visa’s payment network, generating annual fees of $7 billion. Visa’s wrongdoing lies in blocking smaller competitors such as PayPal and Square through contracts with banks and merchants. If these competitors opt for alternative debit networks or payment systems, they face higher fees imposed by Visa.
The Ministry of Justice concludes that Visa’s behavior stifles competition and increases costs for banks and merchants, ultimately passing these costs on to consumers through higher prices of goods.
The next step in the process is a court proceeding, with the Ministry of Justice filing the lawsuit in the Southern District of New York. Visa’s spokesperson stated that the company will fight the case.
Source: Department of Justice, Axios
Image from Visa
TLDR: The Ministry of Justice in the United States has sued Visa for monopolizing the debit card payment network, resulting in higher costs for consumers. Visa denies the allegations and plans to defend itself in court.
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