The U.S. Department of Justice has filed a civil antitrust lawsuit against Visa, accusing the company of monopolizing debit network markets in violation of Sections 1 and 2 of the Sherman Act. The complaint, filed in the U.S. District Court for the Southern District of New York, alleges that Visa’s dominance in the debit network markets has allowed it to maintain a monopoly through exclusionary and anticompetitive conduct, undermining choice and innovation in payment systems.

According to the complaint, Visa controls over 60% of debit transactions in the United States, generating more than $7 billion in fees annually from processing these transactions. The Justice Department claims Visa illegally uses its dominance to stifle competition by imposing restrictive agreements on merchants and banks, penalizing them for using alternative debit networks. These practices allegedly protect Visa’s market position and prevent the growth of smaller, lower-priced competitors.

“We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market,” said Attorney General Merrick B. Garland. “Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service.  As a result, Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything.”

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