Welcome to Shearman & Sterling’s FinTech Blog, where we provide you with insight on key trends in the FinTech ecosystem. Here you can find relevant information with the latest on digital banking, FinTech regulation, digital assets, blockchain, AI, and more.
DOJ Seeks to Block Visa’s $5.3 Billion Acquisition of FinTech Start-up Plaid Due to Antitrust concerns over Nascent Competition
11/16/2020On November 5, 2020, the Department of Justice (DOJ) filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of California seeking to block Visa Inc.’s (Visa) $5.3 billion acquisition of Plaid Inc. (Plaid), announced in January. According to the DOJ, the acquisition would eliminate a nascent competitive threat that would likely result in substantial savings and more innovative online debit services for merchants and consumers in violation of Section 2 of the Shearman Act and Section 7 of the Clayton Act, which make certain monopolization and monopoly maintenance conduct illegal. Visa stated the DOJ’s case is “legally flawed” and that it will “vigorously” defend the transaction.
Transformation and Innovation: A Guide to Partnerships Between Financial Institutions and FinTechs
11/2017Jeremy Kutner, co-head of the firm’s Technology, Media & Telecommunications Group and Nicholas Withers, Associate in the Mergers & Acquisitions Group, collaborated on a FinTech report with The CityUK and Santander UK. The report sets out the key models and real-world examples of how greater collaboration between financial services and FinTechs can aid the development of innovative digital products and services. It also offers seven possible models by which incumbents and FinTechs can partner together, highlighting both the benefits of doing so as well as some of the main legal issues to consider.