Bloomberg reported on Monday that the DOJ planned to file the antitrust suit following a multiyear investigation into Visa’s business practices, which began in 2020. Visa’s attempt to acquire the fintech startup Plaid for $5.3 billion was blocked by the DOJ, who argued that the acquisition would eliminate a competitive threat to Visa’s control of debit markets.
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Although Visa dropped the bid a year later, the DOJ continued investigating its business practices.
In its latest lawsuit, the DOJ alleges that Visa’s “web of exclusionary agreements” with banks and businesses has strengthened its market dominance and suppressed potential competitors. Attorney General Merrick Garland stated that Visa has “unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market.”
“Merchants and banks pass along those costs to customers, either by raising prices or reducing quality or service,” the statement reads. “As a result, Visa’s unlawful conduct affects not just the price of one thing — but the price of nearly everything.”
Visa’s General Counsel Julie Rottenberg dismissed the DOJ’s lawsuit as “meritless” and stated that they will vigorously defend themselves in court.
“Today’s lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving,” Rottenberg said by email. “When businesses and consumers choose Visa, it is because of our secure and reliable network, world-class fraud protection, and the value we provide. We are proud of the payments network we have built, the innovation we advance, and the economic opportunity we enable.”
