DOJ Files Suit Against Visa Over Alleged Debit Card Market Monopoly

The U.S. Department of Justice is preparing to file a lawsuit against Visa, accusing the payments network operator of monopolizing the U.S. debit card market through anticompetitive practices. The DOJ's investigation, which began in 2021, examined Visa's compliance with laws governing debit card market competition.

The U.S. Department of Justice (DOJ) plans to file a lawsuit against Visa, the world's largest payments network operator, alleging that the company illegally monopolized the U.S. debit card market, Bloomberg News reported on Monday.

The antitrust division intends to sue Visa in federal court as early as Tuesday, accusing the company of various anticompetitive behaviors, according to unnamed sources. The DOJ is expected to argue that Visa took measures to prevent competitors from challenging its dominance in the debit card market.

Visa and the DOJ did not immediately respond to Reuters' requests for comment. In 2023, the DOJ's antitrust division issued an investigative demand to Visa, seeking documents and information about its U.S. debit card practices and competition with other payment networks.

Initiated in 2021, the probe focused on whether Visa uses anticompetitive practices in the debit card market. At that time, Visa stated that it believed its debit practices complied with applicable laws. This legal action follows Discover Financial Services' unit, Pulse Network, settling a lawsuit in Texas earlier this year, which accused Visa of obstructing competition in the multibillion-dollar debit card network services market, consequently causing merchants to pay higher fees.

Visa's competitor, Mastercard, has previously faced similar antitrust investigations concerning its U.S. debit program and its competition with other payment networks.

(With inputs from agencies.)