Justice Department files lawsuit against Visa over alleged debit card monopoly

The U.S. Department of Justice (DOJ) plans to file a lawsuit against Visa, the world’s largest payment network operator, accusing it of illegally monopolizing the U.S. debit card market, Bloomberg News reported on Monday.

The antitrust division plans to sue Visa in federal court as early as Tuesday, accusing the company of various anticompetitive behaviors, according to anonymous sources. The DOJ is expected to argue that Visa has taken steps to prevent competitors from challenging its dominance in the debit card market.

Visa and the DOJ did not immediately respond to Reuters requests for comment. In 2023, the DOJ’s antitrust division issued an investigative demand to Visa, seeking documents and information about its U.S. debit card practices and competition with other payment networks.

The investigation, which began in 2021, focused on whether Visa engaged in anticompetitive practices in the debit card market. At the time, Visa said it believed its debit practices were in compliance with applicable laws. The legal action follows the settlement of a Texas lawsuit earlier this year involving Discover Financial Services unit Pulse Network, which accused Visa of hindering competition in the multibillion-dollar debit card network services market, causing merchants to pay higher fees.

Visa competitor Mastercard has previously been the subject of similar antitrust investigations over its U.S. debit card program and competition with other payment networks.

(Based on information from the agency.)