Visa Stock Tumbles as DOJ Accuses Company of Monopoly Practices

On September 24, the United States Department of Justice filed a lawsuit against Visa, accusing the company of maintaining an unlawful monopoly in the U.S. debit card market. Visa reportedly processes over 60% of debit card transactions in the country, earning more than $7 billion in fees annually.

The Justice Department alleges that Visa uses exclusive agreements with merchants and banks to isolate itself from competitors, thereby securing transaction volumes and stifling the growth of smaller, lower-cost rivals. Attorney General Merrick Garland asserted that Visa’s market power allows it to charge fees significantly above competitive levels, ultimately impacting prices of nearly all goods as businesses and banks pass these costs onto consumers.

Additionally, Visa is said to employ financial incentives and threats of punitive fees to persuade potential competitors to partner with them rather than entering the market independently. The Justice Department contends that Visa's tactics are deliberate and systematically aimed at cutting off competition, preventing rivals from gaining necessary scale, market share, and data.