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The US Department of Justice (DOJ) announced Tuesday that Visa and Plaid have agreed to terminate their planned $5.3 billion merger.

Visa, a multinational financial services corporation, facilitates electronic fund transfers. In 2019 Visa’s revenues were about $23 billion. Plaid is a financial services company that builds a data transfer network powering digital finance products. In 2019 Plaid’s revenues were approximately $100 million. Visa announced its proposed acquisition of Plaid for $5.3 billion last January.

The DOJ filed a civil antitrust lawsuit in November to block Visa’s acquisition of Plaid. The department claimed that Visa was a “monopolist in online debt services,” and its acquisition of Plaid would unlawfully maintain that monopoly. The merger would allegedly deprive merchants and consumers of competition, which would “likely reduce quality, service, choice, and innovation.”

Assistant Attorney General Makan Delrahim of the DOJ’s Antitrust Division called the decision a victory for American consumers and small businesses.

The case was scheduled for trial on June 28 in the US District Court for the Northern District of California. Because Plaid and Visa terminated the agreement, the DOJ filed for dismissal of the case.

See the original suit filed by DOJ