Visa is in the crosshairs of the American justice system, which decided to sue the famous bank payment card issuer on Tuesday, September 24, for anti-competitive practices.
In this complaint filed in a New York court, the US authorities accuse Visa of abusing its dominant position to impose exclusivity agreements on banks and merchants and of “maintain your monopoly” by entering into non-compete agreements with potential rivals.
These practices created “a market in which Visa has illegally acquired the power to charge fees that far exceed what it could obtain in a competitive market”said Attorney General Merrick Garland during a press conference.
“Merchants and banks pass these costs on to consumers, either by raising prices or reducing quality or service. So Visa’s illegal behavior affects not just the price of one thing, but the price of virtually everything.”he added.
More than $7 billion in fees collected per year
The San Francisco, California-based company controls more than 60% of debit card transactions in the United States, for which it collects commissions of more than $7 billion (approximately €6.25 billion per year, according to the Department of Justice).
“Visa has closed a series of agreements with major merchants, debit card issuing banks and other key players in the sector”said Doha Mekki, a senior official at the antitrust department of the Ministry of Justice. “These agreements have left merchants who might consider dealing with a cheaper competitor faced with a false choice: choose Visa or face ruinous fees on every Visa transaction.”said.
“Many Americans rely exclusively on debit cards [instantané]especially younger or less fortunate people who cannot get a credit card or prefer not to use one »“The most disadvantaged Americans are therefore the most affected by the imposition of these taxes,” stressed Benjamin Mizer, the number three in the ministry. “exorbitant”said.
“Today’s accusations ignore reality”
The company responded in a press release issued by its legal counsel, Julie Rottenberg. “These claims are unfounded and we will vigorously defend ourselves”said.
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“Today’s accusations ignore the reality that Visa is just one of many competitors in a growing debit industry, where entrants thrive.” she justified. “When businesses and consumers choose Visa, it’s because of our secure and reliable network, our world-leading fraud protection and the quality of our service.”M. assuredme Rotenberg.
In 2021, Visa announced that it was the subject of a Department of Justice investigation into its US debit card practices, in a filing with the US securities regulator.
