Washington, D.C. – The US Department of Justice is gearing up to file an antitrust lawsuit against Visa over allegations of anti-competitive practices. This move comes after a thorough investigation by federal prosecutors looking into Visa’s business operations, particularly focusing on its debit card business and competition within the payment industry.
In response to the impending lawsuit, Visa has stated that it is cooperating with the Department of Justice and maintains that its US debit practices are compliant with the law. However, the specifics of the lawsuit and the exact allegations have not been publicly disclosed at this time.
This legal action against Visa is part of a larger trend of increased scrutiny on big tech and payment companies by antitrust regulators under the Biden administration. The Justice Department, led by Jonathan Kanter, has been actively pursuing cases to address concerns of monopolistic behavior in various sectors, including the ongoing trial against Google for alleged monopolization of digital advertising.
It is worth noting that Visa’s competitor, Mastercard, also faced similar antitrust allegations last year and recently settled charges with the Federal Trade Commission. The settlement required Mastercard to adjust its business practices to ensure fair competition in the market.
As the Department of Justice takes on Visa in this antitrust lawsuit, the outcome of the case could have significant implications for the payment industry as a whole. This legal battle reflects a broader effort by regulators to enforce antitrust laws and promote fair competition in the marketplace.