
Visa is in the crosshairs of the American justice system, which decided to prosecute the famous bank card issuing company on Tuesday, September 24, for anti-competitive practices.
In the complaint filed in a New York court, U.S. authorities accuse Visa of abusing its dominant position to impose exclusivity agreements on banks and merchants and of “maintain its monopoly” by entering into non-compete agreements with potential rivals.
These practices have created “a market in which Visa has unlawfully acquired the power to charge fees that far exceed what it could obtain in a competitive market”Attorney General Merrick Garland said at a news conference.
“Merchants and banks pass these costs on to consumers, either by raising prices or reducing quality or service. Therefore, 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 annually
The San Francisco, California-based company controls more than 60 percent of debit card transactions in the United States, from which it charges fees of more than $7 billion (about 6.25 billion euros) a year, according to the Justice Department.
“Visa has struck a series of deals with major merchants, debit card banks and other key players in the industry.”said a senior official of the antitrust section of the Ministry of Justice, Doha Mekki. “These deals have presented merchants who might consider doing business with a cheaper competitor with a false choice: choose Visa or face ruinous fees on every Visa transaction.”she said.
“Many Americans rely entirely on debit cards [instantané]especially younger or less affluent people who cannot get credit cards or prefer not to use them”stressed, for his part, the number three of the ministry, Benjamin Mizer. The most disadvantaged Americans are therefore the most affected by the imposition of these fees “exorbitant”he said.
“Today’s accusations ignore reality”
The company responded in a statement from its legal advisor, Julie Rottenberg. “These lawsuits are unfounded and we will defend ourselves vigorously.”she said.
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“Today’s accusations ignore the reality that Visa is just one of many competitors in a growing debit industry, with entrants thriving,” she justified. “When businesses and consumers choose Visa, it’s for our secure and reliable network, our unmatched fraud protection worldwide and the quality of our service.”assured Mr.me Rottenberg.
In 2021, Visa announced that it was the target of an investigation by the Department of Justice into its practices in the United States concerning debit cards, in a document sent to the American stock market regulator.