U.S. DOJ set to sue Visa over debit card market monopoly – report

The U.S. Department of Justice (DOJ) plans to file an antitrust lawsuit against Visa (NYSE:V), alleging that the company has illegally monopolized the U.S. debit card market, Bloomberg reported, citing people familiar with the matter.

This legal action is set to sue the pay-tech company in federal court and is expected to be initiated as soon as Tuesday.

The antitrust regulatory prepares to accuse Visa (V) of engaging in practices that prevent competitors from entering the debit card market. This includes entering into exclusive contracts that hinder the growth of rival payment networks and obstruct technology firms from accessing the market, the report said.

Previously in 2023, the DOJ antitrust division sent Visa (V) an investigative demand seeking records and information about its debit card policies in the U.S. and competition with other payment networks.

Shares of Visa (V) dropped 1.78% on Monday during aftermarkets hours of trading.

The company gets a Seeking Alpha quant rating of Hold with the lowest factor grades given to valuation.