Get access to Protocol
Where should we send your daily tech briefing?
The Justice Department filed an antitrust lawsuit on Thursday, alleging that Visa's proposed acquisition of Plaid would limit competition.
In a statement, the DOJ said, "Visa seeks to buy Plaid — as its CEO said — as an 'insurance policy' to neutralize a 'threat to our important US debit business.'" The argument seems to be that Plaid, which helps connect financial companies to each other, would help Visa maintain a monopoly in online debit transactions.
The suit could halt the $5.3 billion acquisition, which was set to be one of the biggest fintech deals yet. In a statement, Visa said the the DOJ's attempt is "legally flawed and contradicted by the facts."