DOJ Sues Visa Over Alleged Monopoly on Debit Card Swipes

The Facts

• The US Department of Justice (DOJ) has filed a lawsuit against Visa, the San Francisco-based payment network, alleging it violated antitrust law by illegally stifling competition in the debit card market.

• The lawsuit, filed in federal court in New York on Tuesday, claims Visa abused its dominant position to penalize merchants for using alternative payment networks and prevent potential rivals from entering the market.

• As Visa earns an incremental fee from transactions routed over its network, the DOJ alleges that its anticompetitive and monopolistic behavior cost billions of dollars to consumers and businesses, including merchants and banks.