Financial

Visa faces new lawsuit from merchants over payments network

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Visa (NYSE:V), the global payments technology company, is facing increased legal scrutiny following a new antitrust lawsuit filed by U.S. merchants.

The proposed class action, filed in federal court in Manhattan, marks the latest legal challenge against Visa after the U.S. Justice Department launched a major antitrust case against the company last week.

The new lawsuit, brought by advertising and marketing company All Wrapped Up Signs and Graphix, accuses Visa of engaging in anticompetitive practices by paying rivals not to develop competing payment networks and threatening merchants with higher fees if they use alternative platforms.

The merchants allege that Visa's actions have allowed the company to unfairly dominate the debit card market, resulting in significant financial harm to businesses.

The lawsuit mirrors the claims made by the Justice Department, which accused Visa of using its market power to stifle competition and charge excessive fees to merchants.

Visa has denied these allegations and vowed to fight the government's case.

The new lawsuit is expected to attract more private litigation against Visa, as often happens following major government antitrust cases.

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