The Department of Justice on Tuesday filed a lawsuit against credit card company Visa, alleging that the company is illegally maintaining a monopoly on the debit card market.
The Justice Department alleges that Visa restricts competition by entering into exclusive agreements with retailers and banks, forcing them to conduct most or all of their transactions on Visa's network.
The company also allegedly bribed or threatened potential rivals with extra fees to avoid competition, particularly from tech and fintech companies, according to the agency's press release.
“We allege that Visa has illegally amassed the power to collect fees far in excess of what could be charged in a competitive market,” Attorney General Merrick Garland said in a statement.
“Retailers and banks then pass on the costs to consumers, either by raising prices or reducing quality and service,” he continued. “As a result, Visa's illegal conduct affects not just the price of one thing, but the price of nearly everything.”
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