#antitrustregulator

[usnewsper-business]

Sony's $10B Merger with Zee Entertainment Terminated: What Went Wrong? #acquisitions #alternativepartnerships #antitrustregulator #CompetitionCommissionofIndia #crossborderdeals #Duediligence #dynamicmarketconditions #Emergingmarkets #investordisappointment #largescaleacquisitions #mergertermination #multinationalcorporations #regulatoryapproval #regulatoryframeworks #riskassessment #SonyCorporation #ZeeEntertainmentEnterprisesLimited

[enterprisewired]

DOJ Sues Visa for Alleged Monopoly in Debit Payment Sector

The U.S. Department of Justice (DOJ) has filed a lawsuit against Visa, accusing the world’s largest payments network of maintaining an illegal monopoly over debit transactions. The lawsuit, filed in a New York court on Tuesday, claims that Visa imposed exclusionary agreements on partners, limiting competition and stifling innovation.

According to the DOJ, Visa’s actions have resulted in billions of dollars in extra fees for American consumers and merchants. “Visa has unlawfully amassed the power to extract fees far beyond what a competitive market would allow,” stated Attorney General Merrick Garland in a release.

Visa’s Monopoly Allegations

As the DOJ sues Visa, it contends that the company’s dominance over the debit payments industry has forced both merchants and banks to raise costs for consumers. Garland remarked, “Visa’s unlawful conduct affects the price of nearly everything.” With Visa controlling more than 60% of the U.S. debit transaction market, the DOJ alleges that the company is using its power to stifle competition.

Visa responded to the allegations, calling the lawsuit “meritless.” Julie Rottenberg, Visa’s general counsel, stated, “Today’s lawsuit ignores the reality that Visa is just one of many competitors in the growing debit space.”

Past and Present Regulatory Scrutiny

This lawsuit is not the first time Visa has faced antitrust scrutiny. In 2020, the DOJ filed a similar case to the one that blocked Visa’s acquisition of the fintech company Plaid. That deal, initially valued at $5.3 billion, was eventually abandoned due to regulatory pressure. Visa and Mastercard have also agreed in the past to limit fees and allow merchants to charge customers for using credit cards, a move retailers said could save up to $30 billion.

The DOJ’s latest complaint argues that Visa imposes punitive rates on merchants and banks if they shift a significant portion of their debit transactions to competitors. These exclusionary agreements, according to the DOJ sues Visa, insulate three-quarters of Visa’s debit volume from fair competition.

Innovation and Competitor Agreements

As the DOJ sues Visa, it also claims that Visa has stifled innovation by paying hundreds of millions of dollars annually to competitors like Apple, PayPal, and Square, ensuring that these companies remain partners instead of rivals. Visa allegedly struck an agreement with a predecessor to Block’s Cash App to prevent it from becoming a significant competitor in the debit payments market.

The DOJ is seeking court intervention to stop Visa from continuing these anti-competitive practices, including fee structures that discourage new entrants into the payments sector. The move is part of broader regulatory efforts during the Biden administration to crack down on monopolistic behavior and protect consumers.

This lawsuit could have far-reaching implications for the payments industry, as other players, like Discover Financial and Capital One, are aiming to compete with Visa and Mastercard.

[jjbizconsult]

Amazon MGM Acquisition: A Game-Changer in the Streaming Industry

Amazon MGM Acquisition: A Game-Changer in the Streaming Industry. Amazon MGM Acquisition In a move that could reshape the landscape of the streaming industry, Amazon is reportedly in advanced talks to acquire MGM Studios for a whopping $9 billion. If this deal materializes, it would mark the largest acquisition in Amazon’s storied history and a significant milestone in the ever-evolving world…

[instadw]

Draft rules ban unfair competition; Tencent, Alibaba slide

[jjbizconsult]

Google Antitrust Trial: Largest in a Quarter Century

Google Antitrust Trial: Largest in a Quarter Century. In a colossal showdown, Google finds itself pitted against the U.S. government in a monumental antitrust trial—a legal clash that has captured the nation’s attention for its potential to reshape the digital landscape. Federal regulators, along with state attorneys general, have embarked on a mission to challenge Google’s dominant position in…