NEW YORK – The United States Department of Justice filed a civil antitrust lawsuit on September 24, 2024 in the U.S. District Court for the Southern District of New York against Visa. The complaint accuses Visa of illegally maintaining a monopoly over debit network markets by using its dominance to prevent the growth of competitors and stop others from creating new and innovative alternatives to Visa.
According to the complaint, 60% of all debit transactions in the U.S. happen on Visa’s debit network. This allows Visa to charge over $7 billion in processing fees yearly. The complaint also accuses Visa of illegally maintaining its monopoly power by insulating itself from competition.
“We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market,” said Attorney General Merrick B. Garland. “Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything.”
Debit transactions are important and popular in the U.S. Millions of Americans use debit for online and in-person purchases. The complaint accuses Visa of dominating debit network markets, charging significant fees and stifling competition.
“Anticompetitive conduct by corporations like Visa leaves the American people and our entire economy worse off,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “Today’s action against Visa reminds those who would stifle competition rather than competing on price or investing in innovation that the Justice Department will never hesitate to enforce the law on behalf of the American people.”
“Visa fears competition and innovation, and instead chooses unlawful cooperation and monopolization,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Visa abuses its power over its customers and buys off would-be rivals at the expense of American consumers, merchants, banks, and the competitive process itself. Today’s lawsuit holds Visa accountable for its conduct in a market that forms the backbone of American commerce.”
In 2020, the Justice Department filed another civil antitrust lawsuit against Visa, this time to stop Visa from acquiring Plaid. The companies decided not to merge.
Visa Inc. is a Delaware corporation with headquarters in San Fransisco. In 2022, Visa had operating margins of 83% in the U.S. Visa charges approximately 8 billion in network fees on debit annually in the U.S.