U.S. sues Visa to block its acquisition of Plaid

(Reuters) - The U.S. government on Thursday filed a lawsuit seeking to block Visa Inc from purchasing the financial technology firm Plaid. In a complaint filed with the federal court in San Francisco, the government called Visa 'a monopolist in online debit transactions' and said the proposed acquisition 'would eliminate a nascent competitive threat' to that monopoly

Reuters November 06, 2020 00:06:48 IST
U.S. sues Visa to block its acquisition of Plaid

US sues Visa to block its acquisition of Plaid

(Reuters) - The U.S. government on Thursday filed a lawsuit seeking to block Visa Inc from purchasing the financial technology firm Plaid.

In a complaint filed with the federal court in San Francisco, the government called Visa "a monopolist in online debit transactions" and said the proposed acquisition "would eliminate a nascent competitive threat" to that monopoly.

Visa said in January it agreed to buy privately held software startup Plaid Inc in a $5.3 billion deal that aimed to boost the payments giant's access to the booming financial technology space.

Visa said it "strongly disagrees" with the lawsuit, adding that it "reflects a lack of understanding of Plaid’s business and the highly competitive payments landscape in which Visa operates." The company said it "intends to defend the transaction vigorously."

The Justice Department's suit said Visa's chief executive called the acquisition an "insurance policy” to neutralize a

"threat to our important U.S. debit business."

Plaid, a financial technology firm with access to financial data from over 11,000 U.S. banks, "is a threat to this monopoly: it has been developing an innovative new solution that would be a substitute for Visa’s online debit services," the Justice Department said.

Visa shares were up more than 2% in late-morning trading.

(Reporting by Jonathan Stempel in New York and David Shepardson in Washington; Editing by Dan Grebler)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook
Business

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook

By Chuck Mikolajczak NEW YORK (Reuters) - A gauge of global stocks hit a record and oil prices jumped on Monday as the newest positive data for a potential COVID-19 vaccine and signs of economic recovery in Asia boosted sentiment. U.S. stocks advanced, with the Dow Industrials setting a record as it neared the 30,000 mark for the first time, after pharma company Moderna said its prospective vaccine was 94.5% effective in preventing the illness, which has crushed economies across the globe

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus
Business

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus

By Anirban Sen and Joshua Franklin (Reuters) - Airbnb Inc's initial public offering (IPO) registration showed on Monday that the home rental startup turned a profit in the third quarter despite the COVID-19 pandemic, as it gears up for one of the most anticipated stock market debuts in recent years. The filing, published ahead of Airbnb's anticipated stock market debut in December, showed a dramatic recovery in its fortunes, after the coronavirus outbreak dragged down its core home rental business during the first half of the year. The slump forced it to lay off 25% of its workforce in May, suspend marketing activities for the year and seek $2 billion (£1.5 billion) emergency funding from investors, including Silver Lake and Sixth Street Partners, at a valuation of $18 billion

Biden says U.S., allies need to set global trade rules to counter China's influence
Business

Biden says U.S., allies need to set global trade rules to counter China's influence

By David Lawder WASHINGTON (Reuters) - U.S. President-elect Joe Biden said on Monday the United States needed to negotiate with allies to set global trading rules to counter China's growing influence but declined to say whether he would join a new China-backed Asian trade pact signed on Sunday.