“We assert that Visa illegally gained the authority to charge fees that far exceeded what (the company) could earn in a competitive marketplace,” Justice Secretary Merrick Garland was quoted as saying in a statement.
“Merchants and banks pass these costs on to consumers, either by raising prices or reducing quality or service. Visa’s illegal behavior, therefore, affects not just the price of a single good, but the price of almost everything,” he added.
“Visa is afraid of competition”
Visa controls more than 60% of debit card transactions in the United States, charging more than $7 billion a year in fees, according to Justice Department estimates. It also accused the San Francisco-based company of “maintaining its monopoly” by entering into non-compete agreements with potential rivals.
“Visa is afraid of competition and therefore abuses its monopoly position to control existing competitors in the debit space and buy potential competitors to the detriment of consumers, merchants, banks and the competitive process itself,” also complained a senior official at Visa’s antitrust section of the Ministry of Justice, Doha Mekki, quoted in the text.
