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The US Department of Justice (DoJ) is on the verge of filing an antitrust lawsuit against Visa, alleging anti-competitive behavior by the payment company. According to a source familiar with the situation, federal prosecutors are expected to file suit as early as Tuesday. This potential legal action follows a prolonged review by the DoJ into Visa’s business practices.
In 2021, Visa disclosed in a regulatory filing that the DoJ’s antitrust division had requested information regarding potential infractions of antitrust laws that prohibit anti-competitive agreements and monopolistic conduct. The civil investigation focused on Visa’s debit card operations in the US and competition among other networks and payment methods.
Last year, Visa reported that federal prosecutors had requested additional documents for this investigation. The company has stated its intention to cooperate with the DoJ and affirmed in 2021 that its “US debit practices are in compliance with applicable laws.”
Both the DoJ and Visa declined to comment immediately on the matter. The possibility of a lawsuit was initially reported by Bloomberg. Following the news, Visa shares fell nearly 2 percent in after-hours trading.
It remains uncertain whether the upcoming enforcement action by the DoJ will address the areas of interest previously disclosed by Visa.
Antitrust agencies have also examined Visa’s competitors. Last year, Mastercard reached an agreement with the US Federal Trade Commission to resolve allegations that it had unlawfully forced merchants to route debit card transactions through its network.
Earlier this year, Visa and Mastercard agreed to reduce the so-called swipe fees charged to retailers in a legal settlement anticipated to save merchants $30 billion over five years. However, the settlement was later rejected by a federal judge.
Progressive antitrust officials within the Joe Biden administration have implemented stricter antitrust policies, aiming to rectify what they term as decades of insufficient enforcement. Under the leadership of Jonathan Kanter, the DoJ’s antitrust division has launched significant cases targeting large corporations, including those in Big Tech. The department is currently engaged in a trial against Google, accusing the company of monopolizing the digital advertising sector. Additionally, the DoJ previously succeeded in a case against Google, branding it a monopolist in online search.
