DOJ Files Lawsuit Against Visa for Alleged Payment Monopoly

The Department of Justice (DOJ) in the United States has taken legal action against Visa, a major payments company, for allegedly monopolizing the debit payments industry. The complaint, which was filed in a federal court in New York on September 24th, claims that Visa uses exclusive agreements and the threat of penalties to prevent competition and maintain its dominance in the market. It is estimated that Visa controls about 60% of the US debit transactions sector, leading to approximately $7 billion in transaction fees. US Attorney General Merrick Garland has accused Visa of engaging in monopolistic behavior, resulting in higher prices for consumers. The complaint also alleges that Visa leverages its market size and corporate holdings to entice potential competitors into partnerships, further stifling competition. Despite these accusations, Visa has defended itself by arguing that the rise of stablecoins as an alternative payment method is exaggerated and that the company’s position as a global financial facilitator is secure. However, stablecoins, which are cryptocurrencies backed by fiat money, are gaining popularity outside the US and have started to surpass traditional fiat currencies as the dominant payment method in various markets.