The Justice Department has taken action against Visa by filing an antitrust lawsuit, accusing the financial giant of engaging in anti-competitive practices within the debit card market in the United States. According to the lawsuit, Visa has allegedly imposed unfair fees on merchants and restricted competition by entering exclusive agreements with merchants and banks to channel the majority of transactions through its payment network. This lawsuit is part of a broader effort by the Biden administration to crack down on monopolistic behavior by large corporations like Visa.

The lawsuit claims that Visa has maintained a monopoly in the debit card market by threatening merchants with higher fees if they use alternative payment networks, leading to reduced competition and stifled innovation. The Justice Department alleges that Visa's actions have not only impacted the prices paid by consumers but have also deterred potential competitors, such as financial technology companies, from entering the debit card market. Visa's general counsel, Julie Rottenberg, dismissed the lawsuit as "meritless" and stated that Visa operates in a competitive market with growing entrants.

Visa, which processes a significant portion of debit card transactions in the US, has been accused of leveraging its market dominance to suppress competition and prevent the emergence of rival payment networks. The lawsuit highlights how Visa's actions have not only affected merchants and consumers but also hindered the competitive landscape within the debit payments ecosystem. The Justice Department aims to address these concerns and ensure a more level playing field in the debit card market through this legal action against Visa.