Visa abandons $5.3B Plaid acquisition in the face of DoJ antitrust suit

Visa abandons $5.3B Plaid acquisition in the face of DoJ antitrust suit


The United States Department of Justice saw a victory in a major fintech acquisition case that could set the stage for a host of antitrust enforcements.

On Tuesday, the DoJ announced that Visa and Plaid had called it quits on their planned merger. Originally announced almost exactly a year ago, Visa was planning to pay $5.3 billion for the upstart tech firm.

Plaid’s ubiquitous software is designed to connect disparate systems of financial data securely. In its November 2020 complaint, the DoJ alleged that Visa was using the acquisition to snuff out competition. Today, Makan Delrahim, of the DoJ’s antitrust division, said:

Trending: The Marshall Report Says Trump Is NEVER Going Back To The White House, But Here’s Why….

“Visa — which has immense power in online debit in the United States — has extracted billions of dollars from those transactions. Now that Visa has abandoned its anticompetitive merger, Plaid and other future fintech innovators are free to develop potential alternatives to Visa’s online debit services. With more competition, consumers can expect lower prices and

Continue reading

You Might Like

Do NOT follow this link or you will be banned from the site!
Thanks for sharing!
Send this to a friend