Authorities in the United States have now filed a lawsuit against a leading financial services provider, Visa, saying the firm monopolized the debit network market, including through agreements with partners. This is said to lead to additional payments that have to be made by sellers and retailers who use the network.
US authorities say this leads to increased prices, reduced quality and service – in addition to impacting the entire market.
In the United States, over 60% of debit transactions are through Visa, leading to over $6 billion in annual processing fees.
At the same time, Visa is said to have agreements with technology companies such as Apple and PayPal, to avoid them becoming competitors to Visa. Visa is said to have an agreement with Apple, saying Apple will not compete directly with the service network provider.
With this development, let's all look forward to what the next step and phase involves Visa, and will it stop with fines only.