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The US Department of Justice orders Intuit to sell Credit Karma to prevent the monopoly from building up

According to an announcement and series of documents filed on Wednesday, Justice Department calls Intuit’s ambitions “fraud”at least partially.

Intuit owns a number of user-oriented financial softwareThese include the Mint Budget app, the digital tax software TurboTax DIY and QuickBooks for corporate accounting. The company first announced the acquisition of Credit Karma in February. Intuit alone paid $ 7.1 billion.

In your antitrust proceedings published today The DOJ isn’t against most new acquisitions, but ordered that Intuit to divest Credit Karma’s tax business, which is said to be a major competitor to TurboTax. In its complaint, the Ministry of Justice writes:

“In 2020, around 41 million people filed a tax return using Intuits TurboTax, representing approximately 66% of the total market for DDIY tax preparation products. In the same period, around two million people filed a tax return with Credit Karma’s DDIY Tax Preparation Product which accounts for about 3% of the total market. “

The US Department of Justice orders Intuit to sell Credit Karma to prevent the monopoly from building up
The US Department of Justice orders Intuit to sell Credit Karma to prevent the monopoly from building up

How much Square will pay for Credit Karma’s tax business is unknown. The Ministry of Justice also noted this The business is a unique threat to TurboTax as it offers its services for free.

Place in the meantime Also run CashAppwho is increasingly involved in Bitcoin. Intuit on the other hand was criticized by crypto guru Andreas Antonopoulos last year. Antonopoulos claimed that Intuit blocked his credit card payments in the company’s accounting services due to the use of cryptocurrencies.

Earlier this month The Justice Department filed another antitrust payment lawsuit against Visa’s attempt to acquire Plaid.

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