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Senator Warren Calls on Regulators to Block Capital One-Discover Merger
Senator Elizabeth Warren is urging regulators to block Capital One’s planned takeover of Discover, arguing that the deal would harm consumers and reduce competition in the credit card market.
The deal, which was announced in January, would combine the nation’s second and fourth-largest credit card issuers. Analysts say it could shake up the payments industry, but Warren believes it would lead to higher fees for cardholders and fewer choices.
“This merger would create a credit card giant with even more power to set prices, nickel and dime consumers, and stifle innovation,” Warren said in a statement. “I urge regulators to block this anti-competitive deal.”
The Consumer Financial Protection Bureau (CFPB), which Warren once led, is one of the regulators that will review the deal. The agency has not yet said whether it will challenge the merger.
In her statement, Warren also called on the Federal Trade Commission (FTC) to investigate the deal. The FTC has the authority to block mergers that it believes would harm competition.
“This merger would be a major setback for American consumers,” Warren said. “I urge the FTC to take a close look at this deal and block it if it would harm competition.”
It is still early in the regulatory process, and it is unclear whether the deal will be approved. But Warren’s opposition could make it more difficult for Capital One and Discover to get the deal through.