By Brent Kendall and AnnaMaria Andriotis
The Justice Department filed an antitrust lawsuit Thursday that seeks to block Visa Inc.'s $5.3 billion deal to acquire Plaid Inc., a key player in the financial-technology space.
The department brought the case in a Northern California federal court, alleging the deal would eliminate the nascent but significant competitive threat that Plaid poses to Visa in the online debit market. The acquisition would allow Visa to unlawfully maintain a monopoly in online debit, leading to higher prices, less innovation and higher entry barriers for online debit services, the department alleged.
Visa and Plaid didn't immediately respond to requests for comment.
More to come...
(END) Dow Jones Newswires