Japan Fair Trade Commission Investigates Visa Japan for Anti-Monopoly Law Violation

The Japan Fair Trade Commission (JFTC) has launched an onsite inspection of Visa Worldwide Japan Co. in Tokyo’s Chiyoda Ward, investigating allegations that the company violated the Anti-Monopoly Law. The probe centers on accusations that Visa, the world’s largest international credit card network, pressured credit card companies using its payment system to also adopt its credit authorization system.

According to sources, Visa threatened to raise payment system fees for those who opted to use competing credit authorization services. “If you use other companies, we will raise payment system fees,” the company reportedly warned.

The investigation is not limited to Visa Japan; sources indicate that the U.S. headquarters may also be implicated. The JFTC is focusing on “dealing on restrictive terms,” a specific provision in the Anti-Monopoly Law that forbids trade practices which unjustly restrict business activities of transaction partners.

If the allegations are substantiated, the increased costs incurred by the credit card companies could be transferred to retailers and consumers, ultimately raising expenses for end-users.

Visa operates by providing its payment system to various credit card companies rather than issuing credit cards itself. These companies have the option to handle payment authorization through multiple entities, not just Visa.

The JFTC will demand relevant documents from both Visa Japan and its U.S. headquarters to thoroughly investigate the claims.

Source: ASAHI