Visa Inc (NYSE:V, ETR:3V64) has been accused by the US of illegally hampering competition within the debit card market.
America’s justice department filed an antitrust lawsuit on Tuesday, claiming Visa had paid off potential competitors and punished those looking to use alternative payment methods.
This had led to higher fees for consumers and hit innovation, the department said, with the lawsuit following an investigation since 2021.
Attorney General Merrick Garland argued Visa’s dominance, which sees it account for over 60% of US debit transactions, meant fees were higher than in a “competitive market”.
“Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service,” he noted.
“As a result, Visa’s unlawful conduct affects not just the price of one thing - but the price of nearly everything.”
Visa subsequently labelled the lawsuit, which had been speculated earlier on Tuesday, as “meritless” and accused it of “ignoring the reality” in the debit market.