Sen. Dick Durbin (D-Ill.) touted that the Justice Department would file a lawsuit against Visa after previously calling on two government agencies to investigate opponents of credit card charges.
“The Department of Justice just sued Visa, alleging that the company illegally maintains a monopoly on the debit market. Visa and its duopoly partner Mastercard similarly dominate the credit card market. 's Credit Card Competition Act will finally bring competition and lower swipe fees,'' Durbin wrote in September.
For the visa controversial The complaint states that there are now more payment alternatives to Visa and Mastercard than ever before.
Julie Rottenberg, Visa's general counsel, said in late September that “anyone who has ever purchased something online or checked out in a store will know that a growing number of companies are offering new ways to pay for goods and services. I know that I continue to do so.”
Currently, there are many competitors in the payment services industry that compete with Visa and Mastercard, such as Venmo, Zelle, and cryptocurrencies.
When asked for comment, Mr. Durbin's office pointed Breitbart News to a joint statement with Sen. Roger Marshall (R-Kan.), a leading advocate of the Credit Card Competition Act. they are said In a joint statement in late September, they said:
According to the Justice Department's complaint, Visa blocked efforts by technology companies to enter the market by entering into exclusive agreements that blocked the expansion of competing networks. At a time when hard-working Americans and small business owners are struggling with soaring prices for everyday goods, Visa shouldn't be using this program to line their own pockets.
Visa and its duopoly partner Mastercard similarly dominate the credit card market. One way to bring competition to the market is to pass bipartisan, bicameral legislation. credit card competition lawThis increases competition among credit card networks and ultimately reduces costs for small businesses and consumers. Our bill ensures that the Visa-Mastercard duopoly ends its price gouging tactics that unfairly harm American families and small businesses.
But Mr. Durbin, along with Mr. Marshall, is working to weaponize the federal government against opponents of the credit card bill.
Marshall and Durbin called on the Department of Transportation and the Consumer Financial Protection Bureau (CFPB) to investigate “troubling reports” of unfair and deceptive practices in airline frequent flyer and loyalty programs. . Subsequently, the Department of Transportation and the CFPB announced Research on credit card and airline reward programs. Citing reports, both senators said, “Airlines are changing their point systems in ways that are unfair to consumers, including devaluing the value of points. “This means that more points will be required than are currently available.”
If true, Marshall would do this. appear Mr. Durbin has slammed Democrats for working with Mr. Durbin to open up the government to the American people.
Lobbying the federal government against opponents of their own bills did not sit well with Republicans on Capitol Hill.
A Senate aide told Breitbart News in February:
This whole investigation is being done because Durbin's credit card bill hasn't passed and this is his revenge. Just as the Biden administration weaponized all institutions against Elon Musk for not toeing the line, Durbin and his allies are weaponizing the administrative state.
In late September, former President Donald Trump called for former House Speaker Pelosi (D-Calif.) to be “prosecuted” over her husband's Visa stock trades ahead of the Justice Department's lawsuit against Visa.
President Trump: Nancy Pelosi has a bit of a problem because her husband sold his Visa stock the day before it was announced that Visa would be sued by the Justice Department – they owned a large amount of Visa stock. ” said.
Conservative groups have also condemned the Justice Department's lawsuit against Visa.
Daniel Savikas, vice president of policy at the Taxpayer Protection Alliance, wrote:
In a last-minute amendment to the 2010 Dodd-Frank financial reform by Sen. Dick Durbin (D-Ill.), Congress capped fees associated with debit card processing. This, like most government rate regulation, ensured that only a small number of companies could reasonably comply and survive. Since then, the debit card market has been trying to catch up.
“The Department of Justice should immediately dismiss this lawsuit, which does significant damage to payments innovation and consumer welfare.” Competitive Enterprise Institute (CEI) I wrote.
The Competition Union writes: @JusticeATR. It's clear that Mr. Biden and Mr. Garland's Justice Department recognize that their time is nearing its end, as they move forward with more antitrust cases against American companies that were successful during the administration's waning years. . ”
Given the facts, Mr. Durbin's tweet supports the Justice Department's lawsuit against Visa and simultaneously shores up his credit card bill, making it clear that government tools are once again being used to punish dissenters. This raises suspicions that this may be the case.
Sean Moran is a policy reporter at Breitbart News. Follow him on X @SeanMoran3.
