The U.S. Justice Department is planning to charge Visa Inc. with illegally monopolizing the U.S. debit card market, according to people familiar with the matter.
The antitrust division is set to file a lawsuit next Tuesday, accusing the operator of the largest U.S. payments network of a range of anticompetitive behavior, according to the people, who asked not to be identified discussing the case. The government is expected to file the case in federal court.
Antitrust officials said they are preparing to accuse Visa of taking steps to prevent rivals from challenging its dominance in the debit card market. The government’s allegations include that Visa has entered into exclusivity agreements to impede the expansion of rival networks and thwart efforts by technology companies to enter the market.
Visa and the Justice Department declined to comment.
The Justice Department’s lawsuit would be the culmination of a years-long investigation into Visa. Business practicesThe investigation was born through the company. Acquisition Failure Fintech infrastructure company Plaid Inc. in 2021.
Over the course of the investigation, the Justice Department also examined Visa. Pricing Structure In what is known in the industry as “token” technology.
Mastercard, a rival payments network company, has reached a settlement in a separate enforcement lawsuit. last year Its token technology practices are being targeted by the US Federal Trade Commission, which also enforces antitrust laws.
-With help from Paige Smith.