The DoJ filed its antitrust complaint in federal court on Thursday in an effort to stop Visa’s $5.3 billion acquisition of payment giant fintech startup Plaid.
November 6, 2020 | AtoZ Markets – The US Department of Justice has filed a lawsuit against Visa in federal court in Northern California. The department’s claims are related to the purchase of the bank data sharing startup Plaid.
DOJ files antitrust lawsuit challenging Visa’s Plaid acquisition
The Ministry of Justice believes that the deal violates antitrust laws and allows Visa to reduce competition in the electronic payments market. The lawsuit cites the payment company’s management, which has estimated the company’s potential losses at $500 million by 2024 if Plaid falls into the hands of rivals.
However, in a commentary to The Wall Street Journal, a Visa spokesman called the ministry’s claims unfounded. The takeover of a fintech startup will ultimately benefit consumers, he said. The interlocutor stressed that the payment company “intends to protect this transaction.”
As a reminder, the British antitrust regulator found no reasons for Visa’s refusal to purchase Plaid. They considered that the deal worth $ 5.3 billion would not affect the level of competition in the UK.
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