The U.S. Department of Justice has filed an antitrust lawsuit against financial services company Visa. The lawsuit alleges that Visa used its network dominance to prevent competition in the market The high fees charged by banks are having an impact on consumers It is claimed.

The U.S. Department of Justice alleges that Visa has monopolized the market, making it particularly difficult for companies like PayPal and Square to compete. The case comes amid a multi-year investigation into Visa’s business practices that began in 2020.

At the time, Visa attempted to buy financial technology startup Plaid for $5.3 billion, but the U.S. Department of Justice blocked the purchase, claiming the deal would harm competition. Although Visa withdrew the offer to avoid legal action, the Justice Department continued its investigation.

‘Visa’s actions increase the cost of everything’

The latest lawsuit alleges that Visa has further strengthened its control over the market through agreements it has made with banks and companies. Attorney General Merrick Garland argued that Visa’s power allowed it to raise market prices and stifle competition. This not only increases the price of a product, but also the cost of almost everything. he declared.

Visa General Counsel Julie Rottenberg argued that the lawsuit filed by the U.S. Department of Justice was unfair. Rottenberg said Visa has many competitors in the card market and the reason Visa is preferred is the security, fraud protection and brand equity they offer.

According to the complaint, Visa processes over 60% of debit card transactions and generates a large annual fee revenue of $7 billion from these transactions. Depending on the outcome of the case, it is quite possible that there will be activity in the market.

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