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The United States Department of Justice has sued Visa, alleging the company has created an illegal monopoly in the debit card business and is stifling competition. The DOJ alleges Visa (V) "illegally maintains a monopoly over debit network markets by using its dominance to thwart the growth of its existing competitors and prevent others from developing new and innovative alternatives."
In a statement to Yahoo Finance, Visa’s General Counsel Julie Rottenberg says "Anyone who has bought something online, or checked out at a store, knows there is an ever-expanding universe of companies offering new ways to pay for goods and services. Today's lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving ... This lawsuit is meritless, and we will defend ourselves vigorously.”
Yahoo Finance Legal Reporter Alexis Keenan breaks down the lawsuit in the video above.
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This post was written by Stephanie Mikulich.