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Visa has canceled plans to acquire encryption technology company Plaid due to US Justice Department lawsuit

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Visa previously planned to acquire Plaid for $5.3 billion.

Rhythm BlockBeats news, on January 13, it was reported that Visa has canceled plans to acquire Plaid for $5.3 billion. ) application to provide technical support. The U.S. Department of Justice announced on Jan. 12 that the two companies had officially called off their proposed merger.

The U.S. Department of Justice filed a civil antitrust lawsuit on November 5, 2020 to block the two The merger of the two companies says Visa is the monopoly in the online debit card space, charging consumers and merchants billions of dollars a year in online payments.

Assistant Attorney General Makan Delrahim said in a statement: "Now that Visa has dropped the anti-competitive merger , Plaid and other future fintech innovators are free to develop potential alternatives to Visa’s online debit card service.” “As competition intensifies, consumers can expect lower prices and better service.”

As previously reported, Plaid has partnered with Coinbase and at least two DeFi startups, which in 2019 received about 1 million dollars in revenue.