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UK: CMA finds Experian/ClearScore merger could hamper competition

 |  November 28, 2018


The UK’s antitrust watchdog has provisionally found that Experian’s takeover of ClearScore is likely to weaken competition in the credit reporting sector and have a negative effect on the services offered to customers.

The Competition and Markets Authority (CMA) referred the proposed £275 million (US$352.9 million) takeover of ClearScore by Experian for an in-depth Phase 2 investigation in July, following initial fears the deal could results in UK consumers ultimately paying more for credit cards and loans.

As the two largest credit checking firms in the UK, the CMA believes that the effect of taking one of the firms out of the market would be to substantially reduce the pressure to continue to develop innovative offers and to make other improvements in services.

The CMA is now asking for views on these provisional findings by December 19, 2018. Potential remedies could include a ruling to sell off parts of the merged company’s business or an ultimate sanction to quash the deal. The statutory deadline for the CMA’s final report is March 11, 2019.

Full Content: Gov UK

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