Visa is facing a lawsuit from the DOJ alleging the credit card company is running a monopoly.
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00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:04There were stock market jitters Tuesday,
00:06but the Dow and the S&P 500 still
00:09squeezed out record closes.
00:11Consumer confidence surprisingly fell in September
00:14by the largest amount in three years.
00:16The conference board blamed the erosion
00:18on a softening jobs market.
00:21Coming up on the calendar for Wednesday,
00:23new home sales, a weekly update on mortgage rates
00:25and applications, and quarterly results
00:28from Micron Technology.
00:30Turning to the day's other headlines,
00:32the Justice Department is suing Visa,
00:35accusing the payment processing company
00:37of trying to run a monopoly in the world of debit card
00:40transactions.
00:41According to the lawsuit, Visa tried
00:43to strong arm merchants into only using its debit card
00:47processing network and penalize those
00:49who wouldn't agree through a fee payment structure.
00:52And the anti-competitive allegations don't stop there.
00:56It is alleged that Visa paid PayPal, Apple,
00:59and FinTech startup Block hundreds of millions of dollars
01:02through agreements that blocked the potential rivals
01:05from developing competing products.
01:07Attorney General Merrick Garland said,
01:09quote, Visa's unlawful conduct affects
01:11not just the price of one thing,
01:14but the price of nearly everything.
01:17Visa has been under the watchful eyes of regulators
01:19and watchdogs for some time.
01:21The DOJ started investigating Visa's business
01:24back in 2021.
01:26A year before that, it sued to block Visa's $5.3 billion
01:30acquisition of Plaid, a FinTech startup.
01:32And earlier this year, a federal judge
01:35knocked down a $30 billion settlement
01:37over the fees charged by Visa and its rival MasterCard.
01:41Visa takes in $7 billion in fees each year,
01:46according to the Justice Department.
01:49And that'll do it for your daily briefing
01:50from the New York Stock Exchange.
01:51I'm Conway Giddens with The Street.
01:54Thanks for watching.