Thu. Aug 18th, 2022

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(Bloomberg) — The U.S. Justice Department sued to block Visa Inc.’s $5.3 billion acquisition of Plaid Inc., accusing Visa of trying to buy the financial-technology firm to eliminate an emerging threat to its online debit business.



Visa Inc. credit cards are arranged for a photograph in Washington, D.C., U.S., on Monday, April 22, 2019. Visa Inc. is scheduled to release earnings figures on April 24.


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Visa Inc. credit cards are arranged for a photograph in Washington, D.C., U.S., on Monday, April 22, 2019. Visa Inc. is scheduled to release earnings figures on April 24.

The Justice Department said in an antitrust complaint filed Thursday in federal court in San Francisco that the deal for Plaid would illegally extend Visa’s dominant position and should be stopped.

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“By acquiring Plaid, Visa would eliminate a nascent competitive threat that would likely result in substantial savings and more innovative online debit services for merchants and consumers,” the government said.

The Justice Department’s case hinges on the fact that Visa handles the lion’s share of debit transactions in the U.S.,

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