The US Department of Justice or DOJ has made what it calls a major leap against Visa by filing a civil antitrust lawsuit. According to it, Visa maintains an illegal monopoly over debit transactions through exclusionary contracts with its partners, which has tended to stifle competition and affect the prices of goods and services across the nation as detailed in a report by CNBC.

Allegations for monopoly practices<o:p></o:p>

The Justice Department on Tuesday filed an antitrust lawsuit against Visa Inc., alleging that the company has monopolized the market for debit card transactions and unlawfully acquired and maintained monopoly power in the relevant market, Attorney General Merrick Garland said in a statement.

The company has unlawfully accumulated the power to impose fees that are considerably higher than what would be expected in a competitive marketplace, he added. This monopolistic behavior affects not only the pricing of individual items but also the increases in nearly all goods and services available to American consumers.

The DOJ said Visa has been forcing billions of extra dollars out of consumers and businesses in the way of higher merchants' prices and lower quality and service from financial institutions. It noted in this case that the costs that merchants and financial institutions are charging consumers at higher prices or in reduced quality and service are ripples affecting the economy at large.

Visa's market leadership<o:p></o:p>

Visa currently captures more than 60 per cent of debit transactions in the United States, collecting more than $7 billion in fees annually. Over the last twenty years, Visa and its smaller counterpart MasterCard have enjoyed tremendous growth and collectively boast a market capitalization nearing $1 trillion. At least this growth can be attributed to changing consumer behavior wherein such consumers use credit and debit cards both in-store and online more often than cash for any transaction.

While this large market share comes with high attention from regulators and retailers alike, the DOJ complaint describes how Visa uses its position to force an exclusionary contract network on merchants and banks. The contracts penalize clients for choosing to pass transactions through other debit networks or payment systems, solidifying Visa's grip in the marketplace.

Prior regulatory enforcement<o:p></o:p>

This is not the first one; the DOJ's lawsuit is coming in the wake of previously attempted moves to try to block the expansion of Visa. The department initiated an antitrust lawsuit in 2020 seeking to block Visa's proposed acquisition of fintech firm Plaid, with a value of $5.3 billion. The parties involved originally announced plans to fight the lawsuit but dropped their bid to buy out Plaid.

Due to their corresponding agreement in March 2024, Visa and MasterCard agreed to top off their fees and allow merchants to tack the extra fees to customers to have them use their credit cards. Estimated savings from the new agreement was around $30 billion over five years to retailers, indicating that there is growing consciousness towards doing something about practices within the payment processing industry.

Consumer and Business Implications<o:p></o:p>

The implications of this judicial process are likely to bear most significantly on the consumers as well as business practices. If successful, the antitrust action that the DOJ filed against Visa is likely to de-strengthen the current dominant character of the debit transaction market, leading to lower fees and better services for consumers.

The case against Visa is a watershed moment in the conversation to date about monopolistic practices within large industries. Given the sharpened scrutiny these massive companies are coming under from US regulatory agencies, it will likely serve as an important precedent for future payment-processing networks.

<o:p>&nbsp;</o:p>

The US Department of Justice or DOJ has made what it calls a major leap against Visa by filing a civil antitrust lawsuit. According to it, Visa maintains an illegal monopoly over debit transactions through exclusionary contracts with its partners, which has tended to stifle competition and affect the prices of goods and services across the nation as detailed in a report by CNBC.

The US Department of Justice or DOJ has made what it calls a major leap against Visa by filing a civil antitrust lawsuit. According to it, Visa maintains an illegal monopoly over debit transactions through exclusionary contracts with its partners, which has tended to stifle competition and affect the prices of goods and services across the nation as detailed in a report by CNBC. Allegations for monopoly practices The Justice Department on Tuesday filed an antitrust lawsuit against Visa Inc., alleging that the company has monopolized the market for debit card transactions and unlawfully acquired and maintained monopoly power in the relevant market, Attorney General Merrick Garland said in a statement. The company has unlawfully accumulated the power to impose fees that are considerably higher than what would be expected in a competitive marketplace, he added. This monopolistic behavior affects not only the pricing of individual items but also the increases in nearly all goods and services available to American consumers. The DOJ said Visa has been forcing billions of extra dollars out of consumers and businesses in the way of higher merchants' prices and lower quality and service from financial institutions. It noted in this case that the costs that merchants and financial institutions are charging consumers at higher prices or in reduced quality and service are ripples affecting the economy at large. Visa's market leadership Visa currently captures more than 60 per cent of debit transactions in the United States, collecting more than $7 billion in fees annually. Over the last twenty years, Visa and its smaller counterpart MasterCard have enjoyed tremendous growth and collectively boast a market capitalization nearing $1 trillion. At least this growth can be attributed to changing consumer behavior wherein such consumers use credit and debit cards both in-store and online more often than cash for any transaction. While this large market share comes with high attention from regulators and retailers alike, the DOJ complaint describes how Visa uses its position to force an exclusionary contract network on merchants and banks. The contracts penalize clients for choosing to pass transactions through other debit networks or payment systems, solidifying Visa's grip in the marketplace. Prior regulatory enforcement This is not the first one; the DOJ's lawsuit is coming in the wake of previously attempted moves to try to block the expansion of Visa. The department initiated an antitrust lawsuit in 2020 seeking to block Visa's proposed acquisition of fintech firm Plaid, with a value of $5.3 billion. The parties involved originally announced plans to fight the lawsuit but dropped their bid to buy out Plaid. Due to their corresponding agreement in March 2024, Visa and MasterCard agreed to top off their fees and allow merchants to tack the extra fees to customers to have them use their credit cards. Estimated savings from the new agreement was around $30 billion over five years to retailers, indicating that there is growing consciousness towards doing something about practices within the payment processing industry. Consumer and Business Implications The implications of this judicial process are likely to bear most significantly on the consumers as well as business practices. If successful, the antitrust action that the DOJ filed against Visa is likely to de-strengthen the current dominant character of the debit transaction market, leading to lower fees and better services for consumers. The case against Visa is a watershed moment in the conversation to date about monopolistic practices within large industries. Given the sharpened scrutiny these massive companies are coming under from US regulatory agencies, it will likely serve as an important precedent for future payment-processing networks.

US Justice Department charges Visa with illegitimate monopoly in debit transactions

Amit P. Mehta, an Indian-origin judge appointed by former US President Barack Obama, will preside over the highly anticipated and massive antitrust trial involving Google. The trial is centered on allegations by US Department of Justice (DOJ) and several American states that Google employed illegal business practices to solidify the dominance of its search engine.

The trial is set to kick off on Tuesday (September 12) and is&nbsp;expected to span 10&nbsp;weeks.

It represents the first time Judge Mehta is overseeing a tech policy-focused case of this nature since his appointment to the US District Court for the District of Columbia in December 2014.

His selection for the case against Google parent company Alphabet was random, as per media reports.&nbsp;

<h2>India connection&nbsp;</h2>

Born in the western Indian state of Gujarat in 1971, Mehta moved to the US with his parents at the age of one, eventually receiving his Bachelor of Arts in Political Science and Economics from Georgetown University before pursuing a law degree.

He made history as the first Asian-Pacific American to be sworn into the US&nbsp;District Court for the District of Columbia.

<h2>Legal career</h2>

Mehta's legal career began in 1997 after graduating from the University of Virginia School of Law.

He worked at law firms like Latham &amp; Watkins and Zuckerman Spaeder LLP, representing high-profile clients in white-collar criminal prosecutions and investigations.

Also Read | <a href="https://www.wionews.com/india-news/morocco-ambassador-maliki-welcomes-indias-offer-of-assistance-after-deadly-earthquake-635132">Morocco Ambassador Maliki welcomes India's offer of assistance after deadly earthquake</a>

His experience includes serving as the attorney for former Representative&nbsp;Tom Feeney (R-Fla.) and helping former International Monetary Fund President Dominique Strauss-Kahn defeat criminal assault charges in New York state court.

<h2>Passion for hip-hop music</h2>

Judge Mehta has displayed a passion for hip-hop music throughout his career.

In various rulings, he demonstrated his knowledge of hip-hop music and lyrics.

He mentioned his favorite musical artists, including Jay-Z, Kanye West, Drake, and Eminem, in a 2015 opinion. Additionally, he quoted lyrics from Beyoncé's song "Sorry" in a 2018 opinion.

<h2>Judge Mehta's previous rulings</h2>

Judge Mehta has previously ruled on significant cases, including those related to the January 6 Capitol riot. He denied former President Donald Trump's attempt to dismiss civil lawsuits holding him accountable for inciting the riot.

Also Read | <a href="https://www.wionews.com/india-news/india-nipah-virus-alert-in-keralas-kozhikode-after-two-unnatural-deaths-reported-in-district-635097">India: Nipah virus alert in Kerala's Kozhikode after two 'unnatural deaths' reported in district</a>

“To deny a President immunity from civil damages is no small step,” Mehta wrote in a 112-page ruling adding, “The court well understands the gravity of its decision. But the alleged facts of this case are without precedent, and the court believes that its decision is consistent with the purposes behind such immunity.”

Watch | Can India amplify the voice of the global south?

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He also ruled that Trump could be sued for his role in inciting the riot because his "Stop the Steal" speech was not an official presidential act.

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Amit P. Mehta, an Indian-origin judge appointed by former US President Barack Obama, will preside over the highly anticipated and massive antitrust trial involving Google.

Amit P. Mehta, an Indian-origin judge appointed by former US President Barack Obama, will preside over the highly anticipated and massive antitrust trial involving Google. The trial is centered on allegations by US Department of Justice (DOJ) and several American states that Google employed illegal business practices to solidify the dominance of its search engine. The trial is set to kick off on Tuesday (September 12) and is expected to span 10 weeks. It represents the first time Judge Mehta is overseeing a tech policy-focused case of this nature since his appointment to the US District Court for the District of Columbia in December 2014. His selection for the case against Google parent company Alphabet was random, as per media reports. India connection Born in the western Indian state of Gujarat in 1971, Mehta moved to the US with his parents at the age of one, eventually receiving his Bachelor of Arts in Political Science and Economics from Georgetown University before pursuing a law degree. He made history as the first Asian-Pacific American to be sworn into the US District Court for the District of Columbia. Legal career Mehta's legal career began in 1997 after graduating from the University of Virginia School of Law. He worked at law firms like Latham & Watkins and Zuckerman Spaeder LLP, representing high-profile clients in white-collar criminal prosecutions and investigations. Also Read | Morocco Ambassador Maliki welcomes India's offer of assistance after deadly earthquake His experience includes serving as the attorney for former Representative Tom Feeney (R-Fla.) and helping former International Monetary Fund President Dominique Strauss-Kahn defeat criminal assault charges in New York state court. Passion for hip-hop music Judge Mehta has displayed a passion for hip-hop music throughout his career. In various rulings, he demonstrated his knowledge of hip-hop music and lyrics. He mentioned his favorite musical artists, including Jay-Z, Kanye West, Drake, and Eminem, in a 2015 opinion. Additionally, he quoted lyrics from Beyoncé's song "Sorry" in a 2018 opinion. Judge Mehta's previous rulings Judge Mehta has previously ruled on significant cases, including those related to the January 6 Capitol riot. He denied former President Donald Trump's attempt to dismiss civil lawsuits holding him accountable for inciting the riot. Also Read | India: Nipah virus alert in Kerala's Kozhikode after two 'unnatural deaths' reported in district “To deny a President immunity from civil damages is no small step,” Mehta wrote in a 112-page ruling adding, “The court well understands the gravity of its decision. But the alleged facts of this case are without precedent, and the court believes that its decision is consistent with the purposes behind such immunity.” Watch | Can India amplify the voice of the global south? × He also ruled that Trump could be sued for his role in inciting the riot because his "Stop the Steal" speech was not an official presidential act. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

Who is Amit P Mehta? Obama-appointed Indian-origin judge to oversee Google antitrust trial

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US Justice Department charges Visa with illegitimate monopoly in debit transactions

Who is Amit P Mehta? Obama-appointed Indian-origin judge to oversee Google antitrust trial

Gravitas: Google loses anti-trust battle in India