Mastercard’s stock price mirrored Visa’s decline amid growing antitrust scrutiny from the Justice Department. The investigation focuses on potential anticompetitive practices within the debit card industry.
The Justice Department’s probe is examining whether Visa and Mastercard are engaging in practices that limit merchants’ ability to route debit card transactions over alternative networks. This scrutiny follows concerns raised by retailers and smaller payment processors about the dominance of the two major card networks.
Analysts suggest that increased regulatory oversight could lead to changes in the way debit card transactions are processed, potentially impacting the revenue models of Visa and Mastercard. The investigation is ongoing, and the ultimate outcome remains uncertain.
Investors are closely monitoring the situation, as the results of the antitrust scrutiny could have significant implications for the future of the payments industry.
