Visa is being targeted by the Department of Justice

The Street

Visa is facing a lawsuit from the DOJ alleging the credit card company is running a monopoly.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:04There were stock market jitters Tuesday,

00:06but the Dow and the S&P 500 still

00:09squeezed out record closes.

00:11Consumer confidence surprisingly fell in September

00:14by the largest amount in three years.

00:16The conference board blamed the erosion

00:18on a softening jobs market.

00:21Coming up on the calendar for Wednesday,

00:23new home sales, a weekly update on mortgage rates

00:25and applications, and quarterly results

00:28from Micron Technology.

00:30Turning to the day's other headlines,

00:32the Justice Department is suing Visa,

00:35accusing the payment processing company

00:37of trying to run a monopoly in the world of debit card

00:40transactions.

00:41According to the lawsuit, Visa tried

00:43to strong arm merchants into only using its debit card

00:47processing network and penalize those

00:49who wouldn't agree through a fee payment structure.

00:52And the anti-competitive allegations don't stop there.

00:56It is alleged that Visa paid PayPal, Apple,

00:59and FinTech startup Block hundreds of millions of dollars

01:02through agreements that blocked the potential rivals

01:05from developing competing products.

01:07Attorney General Merrick Garland said,

01:09quote, Visa's unlawful conduct affects

01:11not just the price of one thing,

01:14but the price of nearly everything.

01:17Visa has been under the watchful eyes of regulators

01:19and watchdogs for some time.

01:21The DOJ started investigating Visa's business

01:24back in 2021.

01:26A year before that, it sued to block Visa's $5.3 billion

01:30acquisition of Plaid, a FinTech startup.

01:32And earlier this year, a federal judge

01:35knocked down a $30 billion settlement

01:37over the fees charged by Visa and its rival MasterCard.

01:41Visa takes in $7 billion in fees each year,

01:46according to the Justice Department.

01:49And that'll do it for your daily briefing

01:50from the New York Stock Exchange.

01:51I'm Conway Giddens with The Street.

01:54Thanks for watching.

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