U.S. Justice Department Files Antitrust Lawsuit Against Visa

Attorney General Merrick Garland has accused a major financial firm of influencing the prices of nearly everything through its high fees. How will this situation unfold in the future?

A Financial Giant Under Legal Scrutiny

Visa, the renowned financial company, finds itself in the spotlight, albeit for undesirable reasons. The U.S. Department of Justice (DOJ) has launched an antitrust lawsuit against the firm, alleging that Visa has monopolized the debit network markets, enabling it to charge excessive fees to banks and merchants—costs ultimately borne by consumers.

A Thwarted Acquisition

The plot thickened when Visa attempted to acquire fintech startup Plaid for $5.3 billion. However, the DOJ intervened, blocking the deal on the grounds that it would remove a competitive threat to Visa’s stronghold on debit markets.

Visa withdrew its offer a year later to sidestep further legal complications, yet the DOJ persisted in investigating Visa’s business practices.

An “Exclusionary Network of Agreements”

According to the DOJ, Visa has established an “exclusionary network of agreements” with banks and businesses to bolster its market dominance and suppress potential competition.

Attorney General Merrick Garland stated that Visa has “illegally amassed power to extract fees far exceeding what it could charge in a competitive market.”

Visa Defends Itself

In response to these allegations, Visa stands resolute. Julie Rottenberg, Visa’s general counsel, told Engadget that the DOJ’s lawsuit is “without merit,” and the company plans to “vigorously defend” itself in court.

She argues that Visa is “just one of many competitors in a growing debit space with thriving new entrants.” Visa is therefore prepared to fight back and maintain its market position.