Justice Department Takes on Visa in Major Antitrust Lawsuit

The U.S. Department of Justice has filed a lawsuit against Visa, alleging antitrust violations related to high fees and anti-competitive practices. The lawsuit claims Visa suppresses competition, maintains dominance through exclusive agreements, and imposes hefty penalties on merchants. This move aligns with the Biden administration's efforts to reduce consumer costs.

The U.S. Department of Justice filed a lawsuit against Visa on Tuesday, accusing the giant payment network of antitrust violations. The Justice Department claims Visa suppresses competition by imposing high fees on merchants and paying off potential rivals.

Visa processes over 60% of debit transactions in the U.S., generating $7 billion annually. The company maintains its dominance through agreements with card issuers, merchants, and competitors, the complaint alleges.

Attorney General Merrick Garland stated that Visa's unlawful conduct affects prices across the board, as costs are passed onto consumers. The lawsuit seeks to block Visa from enforcing pricing structures that hinder competition and from paying off rivals. The Justice Department began investigating Visa's practices in 2021.

(With inputs from agencies.)