Senate Majority Leader Chuck Schumer has expressed concern over Capital One's proposed $35 billion acquisition of Discover, seeking information about the deal's potential anticompetitive effects. Schumer's inquiry is in response to fears that the merger could lead to increased market consolidation, which may harm consumers by raising prices or limiting options. The merger would position the new entity as the top credit card issuer in the U.S., prompting Schumer to demand data on market shares, pricing trends, employment impacts, and claimed synergies. His action reflects broader worries about market concentration and its effects on different customer segments, including the elderly, young people, and those with poor credit.
Read the full article here.