Cos. Buying Nascent Rivals Should Beware Antitrust Scrutiny
By Jessica Michaels (March 18, 2021, 4:33 PM EDT) -- On Jan. 12, the U.S. Department of Justice announced that Visa Inc. and Plaid Inc. had abandoned their planned $5.3 billion merger, which the DOJ had sued to block two months earlier.
The DOJ's November 2020 complaint acknowledged that Plaid, a financial technology firm, did not have existing technology that currently competed directly with Visa.
Nevertheless, the DOJ alleged that the proposed transaction would "eliminate a nascent competitive threat that would likely result in substantial consumer savings and more innovative online debit services." Rather than engaging in a potentially costly and lengthy legal battle, Visa and Plaid walked away from the proposed...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!