Visa Faces DOJ Antitrust Lawsuit Over Dominance in Debit Transactions

Visa is under scrutiny after the U.S. Department of Justice filed a lawsuit alleging it violated antitrust laws by suppressing competition with high fees and alliances. The lawsuit claims Visa's practices impact prices broadly. The company denies the allegations, stating its network offers security and reliability.

Visa shares fell sharply on Tuesday following the announcement of a U.S. Department of Justice lawsuit accusing the payment network of antitrust violations. The lawsuit alleges Visa suppressed competition by imposing high fees and forming strategic agreements with potential rivals.

Visa, which processes over 60% of U.S. debit transactions, reportedly earns $7 billion annually in related fees. The Justice Department asserts that Visa maintains its market dominance through agreements with card issuers and merchants.

Visa's general counsel, Julie Rottenberg, has dismissed the claims as meritless, stating that competition in the debit market is thriving. The lawsuit is part of the Biden administration's broader efforts to address rising consumer prices.

(With inputs from agencies.)