A deal in which online payment system company PayPal Inc. (PYPL) was to acquire financial technology startup Plaid Inc. is glaring at antitrust scrutiny after the U.S. Justice Department filed a petition with a U.S. district court in Massachusetts.
The Justice Department is demanding more details concerning the business disclosed to the public. Currently the Justice Department is reviewing the deal to establish if any violations of antitrust law were committed.
The proposed deal in scrutiny is worth $5.3 billion.
This news was first reported on Wall Street Journal which claimed the Justice Department would consider if it will sue to block the deal following findings.
The government is seeking consulting firm Bain & Co to hand over some documents required as part of the antitrust review process. These documents include some which discuss strategies used by Visa Inc. (V) and competition with other debit card networks across the world.
