Visa Assembles Legal Dream Team to Combat US Antitrust Lawsuit

Visa is not taking the U.S. Justice Department’s recent antitrust lawsuit lightly. The payments processing giant has assembled a formidable legal team, tapping seasoned litigators Beth Wilkinson of Wilkinson Stekloff and Jonathan Gleklen, who heads the antitrust practice at Arnold & Porter Kaye Scholer, to spearhead its defense.

This legal dream team will face off against a Justice Department team led by seasoned antitrust litigator Edward Duffy, setting the stage for a high-stakes legal battle with significant implications for the payments industry.

The Justice Department’s lawsuit, filed Tuesday in Manhattan federal court, marks the Biden administration’s first major antitrust action targeting the financial sector. The government alleges that Visa has stifled competition and innovation in the debit card market through anti-competitive practices, including threatening merchants with higher fees for routing transactions to rival networks.

Visa has firmly denied the allegations, maintaining that competition within the debit card market remains robust and vowing to vigorously contest the lawsuit.

Wilkinson and Gleklen bring a wealth of experience to Visa’s defense. Wilkinson recently served as lead counsel for the National Football League (NFL) in a high-profile antitrust case, successfully defending the league against claims of overcharging subscribers for its “Sunday Ticket” package. Gleklen’s impressive track record includes representing major corporations such as Intel, General Electric, and Adobe in complex antitrust matters. Notably, he also successfully defended the former Oakland Raiders against an antitrust lawsuit filed by the city of Oakland over the team’s relocation to Las Vegas.

Arnold & Porter has a long history of representing Visa, having previously defended the company in ongoing litigation alleging price-fixing in credit card processing fees. This deep familiarity with Visa’s business practices and the intricacies of the payments industry will be invaluable as the legal team mounts its defense.

The Justice Department’s case has been assigned to U.S. District Judge John Koeltl, a seasoned jurist with extensive experience presiding over complex antitrust cases. Koeltl’s reputation for fairness and thoroughness suggests that both sides will have ample opportunity to present their arguments before a well-informed and impartial judge.

The outcome of this high-stakes legal battle could have far-reaching implications for the structure and competitiveness of the U.S. payments industry, making it a case to watch closely in the months to come.