The U.S. Department of Justice has filed suit in a federal court in Northern California against Visa. The department’s claims relate to the payments giant’s acquisition of fintech startup Plaid.
The DOJ argues the deal would violate antitrust law and reduce competition in the electronic payments market. The suit cites the payments company’s executives’ assessment that potential losses of $500 million by 2024 if Plaid ends up in rivals’ hands.
In a statement to The Wall Street Journal, a Visa representative said the department’s claims are unfounded. According to him, the acquisition of the fintech startup would ultimately benefit consumers. The spokesperson emphasised that the payments company intends to defend the deal.
Filed Visa Plaid Complaint 0 by ForkLog on Scribd
Earlier, Britain’s antitrust regulator did not find reasons to block Visa’s purchase of Plaid. The deal, valued at $5.3 billion, would not affect the level of competition in the United Kingdom.
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