8.6 C
New York
Sunday, February 28, 2021
Home Fintechs Visa's Plaid takeover faces antitrust scrutiny at the DOJ

Visa’s Plaid takeover faces antitrust scrutiny at the DOJ

The Departement of Justice could sue to block Visa’s $5.3 billion acquisition of bank data sharing startup Plaid over competition concerns, the Wall Street Journal reported.

The DOJ has been getting ready for the possibility of litigation, WSJ said, citing some of the unnamed sources. However, a final course of action has not been determined.

Read also: Thomas Dodson joins N26 as Head of Engineering in the US

“American consumers rely on the Antitrust Division to investigate mergers promptly and thoroughly,” said Assistant Attorney for the Antitrust Division Makan Delrahim, in a statement.

“Collecting relevant third-party documents and data is essential to the division’s ability to analyze these transactions. Too often, third parties seek to flout these requirements, hoping the division will lose interest and focus its enforcement efforts elsewhere,” he added.

Visa has agreed to the $5.3 billion deal for Plaid this January. Plaid enables consumers to conveniently share their financial information with thousands of apps and services such as Acorns, Betterment, Chime, Transferwise and Venmo.

Visa’s bid for Plaid isn’t the only big fintech acquisition that is in the DOJ’s sights, according to the report in The Wall Street Journal.

Federal regulators are also looking at Mastercard’s $1 billion bid for the fintech startup Finicity, and Intuit’s $7 billion pitch to acquire the credit advisory and lending marketplace, Credit Karma.

Avatar
Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Starling Bank aims to hold 18% of the SME market

The digital bank Starling announced a plan in which it is going to hold 18% of the SME banking market in five years, Insider reported.

TransferWise gets rebranded as ‘Wise’

The rebranded company Wise drops the part Transfer as a signal of moving on from the money-transfer focus of the company.

Revolut about to increase fees and cut number of free trades

Revolut introduced additional fees on its free plan and trading on the Revolut platform will also become more expensive.

Exclusive: An interview with Michael Schweikart, a co-founder of the sustainable banking provider Tomorrow

Tomorrow is a social business FinTech company and a neobank, that was started in 2018 by founders Inas Nureldin, Jakob Berndt, and Michael Schweikart with a vision to use money as a lever for positive change. Since its launch in 2018, the company has 50+ employees and 55,000+ customers.