Subj : The US government is suing Visa over its dominance of the payment
To   : All
From : TechnologyDaily
Date : Wed Sep 25 2024 17:30:05

The US government is suing Visa over its dominance of the payments market

Date:
Wed, 25 Sep 2024 16:29:00 +0000

Description:
The Department of Justice has filed an antitrust lawsuit against Visa, which 
accounts for 60% of the market.

FULL STORY
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The US Department of Justice has filed an antitrust lawsuit against payment 
service giant Visa for its alleged monopoly over the debit card network. 

The DOJ says Visa has been engaging in anticompetitve business practice by 
suppressing competition and innovation, in turn violating Sections 1 and 2 of 
the Sherman Act. 

It claims Visa controls over three in five US debit transactions, resulting 
in $7 billion in processing fees annually. Visa accused of monopolistic 
practices 

The US governments lawsuit argues Visa has maintained its dominance of the 
payments market by striking up exclusionary agreements that penalize 
merchants and banks for using its competitors. 

In doing so, US officials say consumers have had to deal with inflated costs, 
while smaller payment processors and fintech companies have been unable to 
grow. The DOJ also found Visa guilty of partnering up with would-be 
competitors by offering generous monetary incentives in order to insulate 
itself from competition. 

Attorney General Merrick B. Garland confirmed: We allege that Visa has 
unlawfully amassed the power to extract fees that far exceed what it could 
charge in a competitive market. 

Principal Deputy Associate Attorney General Benjamin C. Mizer added: Todays 
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. 

This isnt the first time that Visa has come under fire in the US. In 2020, 
the DOJ set out to stop the company from acquiring fintech app technology 
company Plaid. The proposed $5.3 billion deal was indeed called off. 

 TechRadar Pro has asked Visa to respond to the DOJs announcement, but the 
company did not immediately respond. More from TechRadar Pro Judge rules 
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These are the best payment gateways to take your store online Check out our 
roundup of the best ecommerce platforms



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Link to news story:
https://www.techradar.com/pro/the-us-government-is-suing-visa-over-its-dominan
ce-of-the-payments-market


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