Intuit Inc., the software company behind TurboTax, won U.S. antitrust approval for its $7.1 billion takeover of personal finance website Credit Karma Inc.
The Justice Department said Wednesday it was clearing the deal after Credit Karma agreed to sell its tax business to Square Inc. for $50 million to resolve government concerns over competition in do-it-yourself tax products.
San Francisco-based Credit Karma has attracted more than 100 million users by offering free credit scores since it was founded in 2007. The financial technology startup offers other services, including the ability to apply for a credit card, find an auto loan or start a savings account.
The Justice Department said Credit Karma’s tax business, which doesn’t charge for its products, had become a disruptive competitor to TurboTax. It said the sale to Square would continue the competition.
“Today’s divestiture to Square, another highly successful and disruptive fintech company, ensures that taxpayers will continue to both benefit from this competition and benefit from new innovative financial service offerings from both Intuit and Square,” Makan Delrahim, the head of the antitrust division, said in a statement.
—David McLaughlin (Bloomberg)