Unveiling the Secrets of the Editor’s Digest
Discover the latest top stories handpicked by Roula Khalaf, the Editor of the FT, in this exclusive weekly newsletter.
- The US Department of Justice vs. Visa:
- The US Department of Justice is gearing up to file an antitrust lawsuit against Visa, alleging anti-competitive practices.
- Federal prosecutors are expected to initiate legal action soon after a thorough investigation into Visa’s business operations.
- Visa disclosed in 2021 about DoJ’s scrutiny regarding potential antitrust violations in its debit card business.
- The focus of the civil probe includes Visa’s business practices in the US, competition in various networks, and payment methods.
- Visa maintains compliance with applicable laws and is cooperating with the investigation.
- Antitrust agencies are closely monitoring Visa’s competitors as well, such as Mastercard.
- Antitrust Regulation Landscape:
- Mastercard settled charges with the US Federal Trade Commission in 2021 for coercing merchants to funnel debit card payments through its network.
- Visa and Mastercard agreed earlier this year to reduce swipe fees charged to retailers, benefiting merchants with significant savings.
- The Biden administration’s antitrust officials, led by Jonathan Kanter, are adopting a robust antitrust policy targeting powerful corporations, especially in Big Tech.
- The Justice Department is actively pursuing major cases against tech giants like Google for alleged monopolistic practices in online search and digital advertising.
In conclusion, the upcoming antitrust lawsuit against Visa signifies a broader crackdown on anti-competitive behavior by dominant players in various industries. The shifting regulatory landscape under the Biden administration highlights the government’s commitment to fostering fair competition and curbing monopolistic tendencies. Stay tuned for more developments in the ongoing battle for a level playing field in the corporate world.
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