United

when

The United States Department of Justice (DOJ) has filed an antitrust suit against payments giant Visa for allegedly operating a debit payments monopoly.&nbsp;
A complaint <a data-ct-non-breakable="null" href="https://edition.cnn.com/2024/09/24/business/visa-doj-lawsuit/index.html" rel="null" target="null" text="null" title="null">filed</a> in a federal court in New York on Sept. 24 alleged that Visa uses exclusivity agreements and the threat of penalties against vendors to prevent competition from infringing on the company’s market share.&nbsp;
<h2 id="strong-alleged-payments-monopoly-strong">Alleged payments monopoly</h2>
Visa reportedly commands a 60% market share in the US debit transactions sector, allowing the firm to reap $7 billion in transaction fees alone.&nbsp;
In a statement, US Attorney General Merrick Garland opined that Visa’s conduct was monopolistic and, as such, has served as a catalyst for increased prices:
<blockquote>
 “We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market. 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.”
</blockquote>
<h2 id="strong-transaction-alternatives-strong">Transaction alternatives</h2>
The complaint also alleges that Visa uses its market size and corporate holdings to entice would-be competitors into partnerships. This, purportedly, would align with the DOJ’s allegations that Visa’s practices lead to increased prices for consumers even when alternatives enter the marketplace.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/house-republicans-urge-sec-rescind-sab-121" rel="null" target="null" text="null" title="null">House Republicans urge SEC to rescind ‘disastrous’ SAB 121</a>
As Cointelegraph reported in May, analysts have begun raising the specter of <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/could-stablecoin-volumes-overtake-visa-this-quarter" rel="null" target="null" text="null" title="null">Visa losing its market-leading status</a> among payment facilitators. They argue that new competition from the stablecoin market is emerging.
“Stablecoins win on convenience,” said Sacra co-founder Jan-Erik Asplund, predicting that stablecoins — a form of cryptocurrency backed by fiat money — would ultimately outpace Visa as the go-to transaction medium for international payments.&nbsp;
Visa has since replied that the threat of losing its position of global financial facilitator has been overhyped.&nbsp;
Meanwhile, outside the US, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/stablecoins-crypto-threatening-fiat-money-dominance-eastern-asia" rel="null" target="null" text="null" title="null">stablecoins have begun to overtake fiat currency</a> as the dominant payment method in multiple markets.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/lady-of-crypto-bull-market-plans-2025-hall-of-flame/" rel="null" target="null" text="null" title="null">Lady of Crypto will be ‘all out of crypto’ by September 2025: X Hall of Flame</a>

DOJ sues Visa over alleged payments monopoly

목차

Cointelegraph

2024년 9월 24일에 게재된 다른 기사

Elon Pumps Solana Memecoin to Rally 19,000% Ahead of Exchange Listing, While SHIB and Dogecoin Lag

Hedera Becomes Founding Premier Member of Linux Foundation’s New Decentralized Trust Initiative

Core Scientific Mines Over $710 Million Worth of Bitcoin in 2023

TradFi Project FXGuys Smashes Through Private Sale and Raises $1.1M

Bitcoin Climbs as Ellison’s Sentence is Announced

SEC Faces Backlash Over Alleged Misconduct in Ripple Case

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!