DOJ Files Antitrust Suit Against Visa For Alleged Debit Payments Monopoly

According to Cointelegraph, the United States Department of Justice (DOJ) has initiated an antitrust lawsuit against Visa, accusing the payments giant of maintaining a monopoly in the debit payments sector. The complaint, filed in a federal court in New York on September 24, alleges that Visa employs exclusivity agreements and threats of penalties to prevent competition and protect its market share. Visa reportedly holds a 60% market share in the US debit transactions sector, generating $7 billion in transaction fees. US Attorney General Merrick Garland stated that Visa's conduct is monopolistic, leading to increased prices for consumers. Garland emphasized that Visa's ability to extract excessive fees in a non-competitive market results in higher costs for merchants and banks, which are then passed on to consumers through raised prices or reduced quality of service. The DOJ's complaint also claims that Visa uses its market dominance and corporate holdings to form partnerships with potential competitors, further stifling competition. This practice allegedly contributes to higher consumer prices even when alternative payment methods are available. Analysts have suggested that Visa's market-leading status could be challenged by emerging competition from the stablecoin market. Sacra co-founder Jan-Erik Asplund predicted that stablecoins, a type of cryptocurrency backed by fiat money, could eventually surpass Visa as the preferred medium for international payments due to their convenience. Visa has countered these claims, arguing that stablecoin data is unreliable and that concerns about losing its position as a global financial facilitator are exaggerated. Despite Visa's stance, stablecoins have started to gain traction outside the US, becoming the dominant payment method in several markets.