Justice Department Takes On Visa Over Antitrust Violations

The U.S. Department of Justice has filed a lawsuit against Visa, accusing the payment network of violating antitrust laws. The company is allegedly stifling competition by charging high fees and making deals with rivals. This action is part of the Biden administration's effort to lower consumer prices.

The U.S. Department of Justice has launched a crucial antitrust lawsuit against Visa, alleging the payment giant is stifling competition. The government claims Visa sustains its dominance by imposing high fees on merchants and engaging in practices that limit competition.

Visa, responsible for processing more than 60% of all U.S. debit transactions, reaps approximately $7 billion annually from these transactions. Prosecutors contend that the company leverages agreements with card issuers, merchants, and even competitors to maintain its market control.

This lawsuit is part of a broader initiative by the Biden administration aimed at curbing rising consumer prices, a significant issue in the upcoming November 5 presidential election between Democrat Kamala Harris and Republican Donald Trump.

(With inputs from agencies.)