Visa's Abandoned Plan to Acquire Plaid: What Could Have Been a Textbook Case of a Killer Acquisition

30 Pages Posted: 9 Feb 2022

See all articles by Admin SSRN au/at CIRANO

Admin SSRN au/at CIRANO

CIRANO

Frédéric M. Marty

Research Group on Law, Economics and Management (UMR CNRS 7321 GREDEG) / Université Nice Sophia Antipolis; OFCE; Center for Interuniversity Research and Analysis on Organization (CIRANO)

Thierry Warin

HEC Montreal; CIRANO

Date Written: October 26, 2021

Abstract

The applicability of the notion of killer acquisition to digital platforms has long been debated.
The case of the proceedings brought by the U.S. Department of Justice against Visa in November
2020 (before their joint dismissal in January 2021) is even more interesting insofar as it makes it
possible to illustrate and discuss its different facets ranging from the notion of competition
suppression to that of consolidation and extension of the dominant position. Even if the
acquisition project was eventually withdrawn, the complaint analysis also makes it possible to
question inter-digital ecosystem competition and shed light on the issues related to monitoring
acquisitions undertaken by dominant companies.

Keywords: mergers control, killer acquisitions, digital ecosystems, foreclosure, damage to innovation, fintech

JEL Classification: L12, L25, L41, L86c

Suggested Citation

SSRN au/at CIRANO, Admin and Marty, Frédéric M. and Warin, Thierry, Visa's Abandoned Plan to Acquire Plaid: What Could Have Been a Textbook Case of a Killer Acquisition (October 26, 2021). Available at SSRN: https://ssrn.com/abstract=4026596 or http://dx.doi.org/10.2139/ssrn.4026596

Admin SSRN au/at CIRANO (Contact Author)

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Frédéric M. Marty

Research Group on Law, Economics and Management (UMR CNRS 7321 GREDEG) / Université Nice Sophia Antipolis ( email )

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France

HOME PAGE: http://hp.gredeg.cnrs.fr/marty/

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Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

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Thierry Warin

HEC Montreal ( email )

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Montreal, Quebec H2X 2L3
Canada

CIRANO ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

HOME PAGE: http://works.bepress.com/warin/

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