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

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Listed:
  • Frédéric Marty
  • Thierry Warin

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 Even if the acquisition project was eventually withdrawn, the complaint analysis also makes it possible to question inter-digital ecosystem competition and shed light on the issues related to monitoring acquisitions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. L'application de la notion d'acquisition tueuse aux plateformes numériques fait depuis longtemps l'objet de débats. Le cas de la procédure engagée par le Département de la Justice américain contre Visa en novembre 2020 (avant leur rejet conjoint en janvier 2021) est d'autant plus intéressant qu'il permet d'illustrer et de discuter de ses différentes facettes allant de la notion de suppression de la concurrence à celle de consolidation et d'extension de la position dominante. Même si le projet d'acquisition a finalement été retiré, l'analyse de la plainte permet également de s'interroger sur la concurrence au sein de l'écosystème interdigital et de mettre en lumière les enjeux liés au contrôle des acquisitions réalisées par les entreprises dominantes.

Suggested Citation

  • Frédéric Marty & Thierry Warin, 2021. "Visa's Abandoned Plan to Acquire Plaid: What Could Have Been a Textbook Case of a Killer Acquisition," CIRANO Working Papers 2021s-39, CIRANO.
    • Handle: RePEc:cir:cirwor:2021s-39
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    File URL: https://cirano.qc.ca/files/publications/2021s-39.pdf
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    References listed on IDEAS

    as
    1. Frédéric Marty & Julien Pillot, 2021. "Cooperation, dependence, and eviction: how platform-to-business coopetition relationships should be addressed in mobile telephony ecosystems," SciencePo Working papers Main halshs-03202013, HAL.
    2. Biancini, Sara & Ettinger, David, 2017. "Vertical integration and downstream collusion," International Journal of Industrial Organization, Elsevier, vol. 53(C), pages 99-113.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    mergers control; killer acquisitions; digital ecosystems; foreclosure; damage to innovation; fintech; contrôle des fusions; killer acquisitions; écosystèmes numériques; verrouillage; dommages causés à l'innovation; fintech;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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