Moss Explains How Intuit’s Acquisition of Credit Karma Might Violate Antitrust Law
In ProPublica’s February 28 article “TurboTax’s Bid to Buy Free Tax Prep Competitor Might Violate Antitrust Law, Experts Say,” AAI President Diana Moss offered how the FTC’s recent lawsuit in the razors market as a warning sign to Intuit’s (TurboTax) acquisition of Credit Karma. From the article:
Antitrust experts also told ProPublica that, given Intuit and Credit Karma’s respective market shares, the proposed deal would exceed the Justice Department’s merger guidelines regarding market concentration. Diana Moss of the pro-enforcement American Antitrust Institute pointed to the government’s recent lawsuit to stop the maker of Schick razors from acquiring Harry’s, a disruptive player that had shaken up that market.
Under the antitrust review process, Intuit and Credit Karma must submit materials about the deal to the government. At that point, the Justice Department can ask for more extensive documents and ultimately decide whether or not to intervene. The companies have said they expect the acquisition to close in the second half of this year, pending regulatory approval.