Julie Rottenberg, Visa’s common counsel, stated companies and shoppers selected Visa due to its “safe and dependable community”.
“Right this moment’s lawsuit ignores the truth that Visa is only one of many rivals in a debit area that’s rising, with entrants who’re thriving,” she stated.
“This lawsuit is meritless, and we are going to defend ourselves vigorously.”
The submitting in opposition to Visa is the most recent competitors lawsuit from the Biden administration, which has taken a extra aggressive strategy to monopoly considerations, generally known as antitrust within the US, than earlier administrations.
The corporate’s practices have additionally confronted lawsuits and scrutiny from retailers and competitors regulators in different components of the world together with in Europe and Australia.
The Division of Justice began investigating Visa in 2021.
The corporate processes greater than 60% of debit transactions within the US, in line with the criticism, bringing in $7bn in charges yearly. As of 2022, its debit card enterprise was greater by income than its bank card unit, and extremely worthwhile.
Legal professional Basic Merrick Garland stated Visa’s dominance had allowed it to extract charges that have been far greater than it might have charged in a “aggressive market”.
“Retailers and banks move alongside these prices to shoppers, both by elevating costs or decreasing high quality or service,” he stated. “Consequently, Visa’s illegal conduct impacts not simply the worth of 1 factor – however the worth of almost every thing.”
Shares within the agency fell greater than 5%.
The lawsuit, filed in federal courtroom in New York, stated Visa had used a “internet of contracts” that rewarded companies for routing funds to its community with decrease prices, and charged extra to those that use alternate options.
It stated the agency began making such offers after a brand new regulation in 2012 tried to bolster competitors within the debit market, by requiring that banks make debit playing cards usable on not less than two competing fee networks.
The Division of Justice stated Visa additionally used its dominance of the market to threaten tech companies comparable to PayPal with important charges, until they signed offers committing them to routing funds by means of the agency.
It requested the courtroom to rule that Visa is a monopoly and bar it from persevering with the alleged “anticompetitive” practices.