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The U.S. Justice Department filed a lawsuit against Visa, accusing the payments network of maintaining an illegal monopoly over debit payments through exclusionary agreements. The DOJ alleges that Visa’s actions have led to consumers and merchants paying extra fees amounting to billions of dollars. Attorney General Merrick Garland stated that Visa’s conduct impacts prices across various industries. Visa and MasterCard have seen significant growth in the past years, with a combined market cap of $1 trillion. Visa processes over 60% of debit transactions in the U.S., resulting in more than $7 billion in annual processing fees. Regulators and retailers have been increasingly scrutinizing the dominance of payment networks like Visa and MasterCard. In a separate legal battle, Visa faced a lawsuit to block its acquisition of Plaid, which was later abandoned. Visa and MasterCard also agreed to limit fees and allow merchants to charge customers for credit card usage. The DOJ accuses Visa of imposing exclusionary agreements on merchants and banks to stifle competition. The move comes amid increased regulatory action against anticompetitive practices in various industries. Capital One recently announced its acquisition of Discover Financial, aiming to strengthen Discover’s payments network and compete with Visa and MasterCard. Stay tuned for updates on this ongoing story.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.
