A UK watchdog has warned today that a merger between credit data company Experian and its rival ClearScore could reduce competition in the industry.
Experian, the world’s biggest credit data firm, said it was disappointed by the Competition and Markets Authority’s provisional findings. It added that it would engage with authorities to address concerns ahead of the publication of the CMA’s final report early in the new year.
The statutory deadline for the final report is March 11, 2019.
“Our investigation has shown that this is a fast-paced and evolving market, and that both Experian and ClearScore are an important part of that,” said inquiry chair Roland Green.
“The provisional findings in our investigation show that Experian’s proposed takeover of Clearscore is likely to weaken competition in the sector and have a negative effect on the services offered to customers.”
We’re concerned that Experian’s takeover of ClearScore could result in less competition and impact innovation.
Have a look at our provisional findings for more info: https://t.co/QB4VBDwXUZ pic.twitter.com/kC67EFrvEk
— Competition & Markets Authority (@CMAgovUK) November 28, 2018
Experian, an FTSE 100 company, wants to expand in Britain with the purchase of ClearScore, which provides free access to credit reports and scores, and introduces consumers to personal financial products.