VISA JAPAN BRANCH INVESTIGATED FOR ALLEGED ANTITRUST VIOLATIONS

TOKYO, July 17 (Bernama-Xinhua) — Japan’s antitrust watchdog is investigating Visa’s Japanese unit for allegedly pressuring payment card companies to use only its credit information system, which could hamper competition and harm consumers, local media reported on Wednesday, Xinhua reported.

The local branch of Visa, a leading global credit card brand, is suspected of charging higher fees to credit card companies that did not use its network to verify creditworthiness, forcing them to abandon rival networks, national news agency Kyodo reported, citing sources familiar with the matter.

The Japan Fair Trade Commission (JFTC) inspected Visa Worldwide Japan Co’s Tokyo office on suspicion of violating the country’s antitrust law, which prohibits dominant companies from enforcing unfair trading terms on weaker companies. Violations can result in cease-and-desist orders or penalties.

Visa’s actions are likely aimed at excluding competitors from the market, the report said, which could result in continued high fees and increased burdens on consumers and merchants using the service.

Most Japanese credit card companies verify credit information based on networks operated by Visa or NTT Data Japan Corp.

The JFTC is also investigating Visa’s Singapore branch, which oversees operations in the Asia-Pacific region, and whether Visa’s U.S. headquarters was involved.

In 2023, the total value of credit card transactions in Japan was about 105 trillion yen (about $670 billion), according to the Japan Consumer Credit Association.

— BERNAMA-XINHUA