The Justice Department sued Visa for allegedly stifling competition in the market for debit card payments. A complaint filed in the Southern District of New York on Sept. 24 alleged that the credit card giant violated Sections 1 and 2 of the Sherman Antitrust Act.
The complaint quoted Visa’s former chief financial officer saying: “Everybody is a friend and partner. Nobody is a competitor.” It stated that “more than 60% of debit transactions run on Visa’s debit network, allowing it to charge $7 billion in fees each year,” and alleged that Visa penalized disloyalty among merchants and incentivized cooperation from competitors.
Visa General Counsel Julie Rottenberg described the lawsuit as “meritless” in a statement provided to The Epoch Times. “Today’s lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving,” Rottenberg said.