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Japan Orders Visa to Reform Business Practices Over Antitrust Violations

By  |  July 22, 2025

Visa has come under pressure from Japanese competition authorities to revise its business conduct after being found to have restricted fair competition in the credit card sector. The Japan Fair Trade Commission (JFTC) has taken administrative action against the company, marking the first time such measures have been imposed on a credit card issuer in the country, according to Nikkei.

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    At the center of the issue is Visa Worldwide’s Singapore-based division, which oversees its operations in the Asia-Pacific region, including Japan. Per Nikkei, the JFTC found that this unit used fee structures to encourage Japanese card-issuing companies to adopt Visa’s proprietary credit authorization network. Companies that chose alternative systems reportedly faced higher fees for accessing credit information, effectively pressuring them into staying within Visa’s ecosystem.

    The JFTC concluded its investigation after Visa agreed to make unspecified reforms to its practices. While the exact details of the proposed changes have not been released, the regulator deemed Visa’s commitments sufficient to close the case, Nikkei reported. This outcome not only concludes a rare antitrust probe into a major multinational financial firm but also signals Japan’s growing willingness to intervene in digital and financial market dynamics.

    Related: Antitrust Suit Against Apple, Visa, and Mastercard Dismissed by Federal Judge

    Visa’s actions were viewed by the regulator as a strategic move to steer Japanese clients toward its system by altering rules within its complex payment infrastructure. This approach raised concerns about restricted competition and increased costs for rival companies operating in Japan’s payment processing space.

    Beyond Japan, Visa is also facing regulatory pressure in New Zealand. The country’s Commerce Commission recently announced a reduction in interchange fees—costs paid by businesses for accepting card payments—applicable to consumer Visa and Mastercard transactions. According to Nikkei, commercial credit and prepaid debit card fees will remain unregulated for now. The commission’s decision is expected to benefit businesses, with average annual savings projected at around NZD 500.

    These regulatory challenges reflect a broader global push to ensure that large financial players adhere to fair competition principles. For Visa and other global institutions, this means adapting to evolving legal standards across jurisdictions and maintaining transparency in their business practices.

    Source: Nikkei