Visa’s stock plummeted over 5% after the U.S. Justice Department filed an antitrust lawsuit, accusing the company of monopolizing the debit card market. The lawsuit alleges Visa stifled competition by limiting choices for banks and businesses, dominating over 60% of the $4 trillion U.S. debit transactions annually.
Attorney General Merrick Garland stated that Visa’s actions unfairly penalize merchants and banks for using rival payment networks. The company is also accused of threatening new market entrants with high fees.
Visa’s general counsel, Julie Rottenberg, labeled the lawsuit as “meritless,” arguing that Visa operates in a highly competitive market. Despite these claims, the DOJ insists that Visa’s practices inflate costs for consumers.
This lawsuit is part of a broader antitrust crackdown under President Biden, aiming to challenge monopolistic practices in various industries.