The US Justice Department is poised to file a significant antitrust lawsuit against Visa Inc., accusing the financial giant of monopolistic practices in the US debit card market. This anticipated legal action stems from an extensive investigation into Visa’s business practices, which notably intensified following the company’s abortive acquisition of financial-technology firm Plaid Inc. in 2021.
According to Bloomberg Law, antitrust enforcers are expected to allege that Visa engaged in a series of anticompetitive activities, including securing exclusive agreements designed to hinder the growth of competing debit networks and blocking attempts by technology companies to enter the market. This scrutiny has also extended to Visa’s use of “tokenization” technology, a sector where Mastercard Inc. faced its own regulatory challenges last year.
During post-market trading on Monday, Visa’s shares fell nearly 2% following reports of the impending lawsuit. Both Visa and the Justice Department have so far declined to comment on these developments. For further insights into Visa’s ongoing legal troubles, the broader implications for the debit card market, and historical context, interested parties can read more through Bloomberg Law.