TurboTax owner's acquisition of Credit Karma sparks antitrust concerns

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Intuit Inc., the parent company of TurboTax, has agreed to buy Credit Karma. Several legal experts say the deal raises serious antitrust concerns.

TurboTax has long been the leader in do-it-yourself tax-filing software. But it has faced increasing competition from a nimble startup, Credit Karma Inc., which has become one of the preferred financial apps for young people by giving out free credit scores and helping them find auto loans and credit cards. And since 2017, it has offered a completely free tax-filing service.to buy Credit Karma last week.

Eleanor Fox, a law professor at New York University, said regulators wouldn’t just be looking at the companies’ size, but could also be concerned about whether the deal is “cornering a market.” Matt Stoller, the director of research at the American Economic Liberties Project, called it “embarrassing” that Intuit even proposed the merger. “These kinds of mergers are obviously illegal and enforcers just don’t uphold the law,” he said.

 

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