US DOJ to sue Visa over debit card market monopoly, Bloomberg News reports

(Reuters) -The U.S. Department of Justice plans to file a lawsuit against Visa (NYSE:V), the world’s largest payments network operator, alleging that the company illegally monopolized the country’s debit card market, Bloomberg News reported on Monday.

The antitrust division is set to sue Visa in federal court as early as Tuesday, accusing it of various anticompetitive behaviors, the report said, citing unnamed sources.

The Justice Department is preparing to accuse Visa of taking measures to prevent competitors from challenging its dominance in the debit card market, according to the report.

Visa and the DOJ did not immediately respond to Reuters’ requests for comment.

In 2023, the DOJ’s antitrust division issued an investigative demand to Visa, seeking documents and information about its debit card practices in the U.S. and competition with other payment networks.

The probe, initiated in 2021, investigated whether Visa uses anticompetitive practices in the debit card market. The payment processor, at that time, said that it believed its debit practices complied with applicable laws.

This move follows Discover Financial Services (NYSE:DFS)’ unit, Pulse Network, settling a lawsuit in Texas earlier this year, which accused Visa of obstructing competition in the multibillion-dollar debit card network services market, causing merchants to pay higher fees.

Visa’s rival Mastercard (NYSE:MA) has previously faced similar antitrust investigations regarding its U.S. debit program and competition with other payment networks.