From CNBC: 2024-09-24 14:59:51

The U.S. Justice Department filed a civil antitrust suit against Visa, accusing the company of maintaining an illegal monopoly over debit payments, resulting in consumers and merchants paying billions in additional fees. Visa and MasterCard combined have a market cap of around $1 trillion, with Visa charging over $7 billion annually in processing fees. Regulators and retailers are increasingly scrutinizing their dominance. In 2020, the DOJ blocked Visa’s acquisition of Plaid, leading to a $5.3 billion deal abandonment. Visa and Mastercard recently agreed to limit fees, but a federal judge rejected the settlement, suggesting a larger deal. The DOJ accuses Visa of penalizing customers and stifling competition to maintain dominance in the market. President Biden’s administration has been active in suing companies for drug prices and junk fees. Capital One announced a $35.3 billion acquisition of Discover Financial, aiming to boost Discover’s payments network to compete with Visa and Mastercard.



Read more at CNBC: DOJ accuses Visa of monopoly that impacts price of ‘nearly everything’