The Department of Justice is suing Visa

60% of debit transactions in the US run on the company’s network

9/25/24 9:24AM

Yesterday, the Department of Justice announced that it’s suing Visa for monopolizing the debit payment market, alleging that the company paid competitors like PayPal to stay out of its way and entered into various agreements with merchants that meant they could face penalties for using alternative providers.

Debit dominance

On the face of it, Visa looks a lot like a monopoly. The company’s ~60% share of all US debit card transactions helps it rack up more than $7 billion in processing fees, according to the DOJ, with Attorney General Merrick Garland observing: “Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything”. It’s not just in America either, as debit payments have become an increasingly important part of Visa’s global business too.

In 2009, Visa processed $2.68 trillion in payments, with around a third coming from debit transactions, while credit cards accounted for almost 55%.

Fast forward almost 15 years, and about $86 trillion worth of Visa transactions later, the bulk now comes from debit cards, which accounted for 45% (a whopping $5.5 trillion) of all Visa payments.

The new lawsuit marks the first major antitrust case in the financial services industry under Biden, though the administration has been looking into Visa’s debit market practices since 2021. Given its staggering market share, as well as the company’s rising processing fees, which have drawn the attention of other regulators around the world, many may feel that the DOJ’s action could have come a little sooner.

Max Knoblauch

13h

Reddit bounces on report that it’s in talks with Google, OpenAI on fresh data-sharing deal

Reddit shares were down 5% in Wednesday trading before news that the company is in early talks to make its next AI content-sharing deals with Google and OpenAI sent them back up to roughly flat.

According to reporting by Bloomberg, Reddit is seeking a new data deal structure that includes dynamic pricing and would encourage the companies’ AI users to contribute to Reddit.

Reddit reportedly struck deals of $60 million per year with Google and OpenAI last year. The company scored $35 million in “other” revenue — which includes content licensing agreements — in its most recent quarter. That accounted for about 7% of the company’s overall revenue in the period.

“One of the things that we’ve learned, particularly through the data licensing deals is... how essential Reddit is to AI or LLMs as we know them and the next generation of search,” Reddit CEO Steve Huffman said on the company’s July earnings call. “And so I think a lot has changed over the last couple of years. Every variable has changed since we signed those first deals.”

Reddit Seeks to Strike Next AI Content Pact With Google, OpenAI

16h

DO YOU EVEN SIP, BRO?

Adam Chandler

Hyunsoo Rim

17h

VF Corp. is shedding its century-old workwear icon, Dickies, after years of struggle

The brand’s sales have been going backward for three straight years.

$100B

Nia Warfield

9/16/25

Alphabet’s YouTube said it’s paid out over $100 billion to creators, artists, and media companies over the past four years — cementing its place as one of the internet’s biggest talent magnets. The Google-owned platform, which turned 20 this year, credited connected TVs as a major driver of growth.

YouTube said the number of channels earning over $100,000 from TV screens has surged over 45% in the past year alone. Meanwhile, ad revenue for YouTube grew double digits in Q2 to $9.8 billion, topping the Street’s estimates.

Nia Warfield

9/16/25

Webtoon surges after Disney plans to invest and partner in digital push for brands like Marvel and “Star Wars”

Webtoon Entertainment shares jumped 36% in premarket trading Tuesday after Disney said it’s buying a 2% stake in the digital comics platform. The investment is part of a deal to bring Marvel, “Star Wars,” Pixar, and 20th Century Studios titles into a new streaming-style app run by Webtoon. The offering will launch in Q4 across the US and nine other countries.

“With a new platform that will combine our product and technical expertise with Disney’s full comic catalog, we’re giving new and longtime fans all over the world a new way to discover these legendary characters and stories,” said Junkoo Kim, founder and CEO of Webtoon Entertainment.

The platform is expected to host more than 35,000 titles, mixing archived comics with Webtoon originals. Disney+ perks could also be on the table, giving the service a natural tie-in to Disney’s broader streaming play.

The arrangement isn’t final yet: Disney’s stake and the platform details are still under negotiation. But with Webtoon’s ~155 million monthly active users, the partnership gives Disney a mobile-friendly channel for its comics while Webtoon gains the ultimate IP access.