The US has sued Visa for a monopoly on debit-card use affecting the "price of nearly everything". The US government claims firm stifles competition by threatening merchants with high fees and pays off potential rivals. Visa processes more than 60% of debit transactions in the US, bringing it $7bn each year in fees, the justice department said.
But Visa has suppressed competition by threatening merchants with high fees and paying off potential rivals, according to the complaint, filed in US district court for the southern district of New York. The lawsuit alleges that Visa makes it difficult for merchants to use alternatives, like lower-cost or smaller payment processors, instead of its own payment processing technology, without incurring what prosecutors described as “disloyalty penalties”. READ MORE Drivers who 'repeatedly' break rule which started on June 1 face £1,380 fine “We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market,” said the US attorney general, Merrick Garland, in a statement.
“Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. “As a result, Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything.” Visa described the complaint as “meritless” and vowed to “vigorously” defend itself.
“Anyone who has bought something online, or checked out at a store, k.
