The Financial Times reports that the U.S. Department of Justice is preparing to file an antitrust lawsuit against Visa, accusing the payment company of anticompetitive behavior.
A person familiar with the matter said federal prosecutors are set to file the suit as early as Tuesday. The move comes after a Justice Department review of Visa’s business practices.
It is noted that the company released regulatory filings in 2021 that the Justice Department’s antitrust division sought information about possible violations of antitrust provisions prohibiting anticompetitive agreements and monopolistic behavior.
The investigation focused on Visa’s debit card business in the U.S. and competition in other networks and payment methods.
The company said last year that federal prosecutors had requested additional documents as part of that investigation. Visa said it cooperated with the Justice Department and said in 2021 that its “debit practices in the U.S. comply with applicable law.”
Visa shares fell nearly 2% in after-hours trading.
It’s still being determined whether the Justice Department will target Visa’s previously disclosed business areas.
Antitrust regulators have been scrutinizing Visa’s competitors. Last year, Mastercard reached a settlement with the U.S. Federal Trade Commission to resolve allegations that it illegally forced merchants to use its payment network to process debit payments.
Earlier this year, Visa and Mastercard agreed to reduce the so-called “swipe fees” (transaction fees) they charge retailers in a legal agreement that merchants said was supposed to save them $30 billion over five years. Still, a federal judge later rejected the deal.