Big Data Promises Better Deals. However for Whom?
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The statement early in the day this week that Intuit, the economic pc software giant, could be buying the individual finance business Credit Karma for $7 billion was striking. The technology industry is under more antitrust scrutiny than in the past; just a couple of weeks hence, the Federal Trade Commission announced a diverse inquiry to the previous decade of purchases by the five tech giants that are biggest, by having a consider mergers that destroy down budding competitors. This deal definitely raises that possibility: Intuit and Credit Karma compete on various fronts, and Intuit’s most recent federal filings known as Credit Karma’s free taxation planning computer software as a risk to its principal offering, TurboTax. Intuit has stated it shall keep Credit Karma's solution free, and probably has to promise the maximum amount of to regulators getting the deal authorized.
But antitrust enforcers, whoever core duty is always to keep areas competitive and protect consumers, are not only viewing for mergers that kill off rivals. They’re also beginning to look more closely at just just just how technology businesses acquire and employ information. And therefore is apparently the event that is main. The firms on their own have actually recommended that a force that is driving the merger is Intuit attempting to get its fingers on Credit Karma’s stash of user information. Which raises an essential concern: Do consumers reap the benefits of deals in which the key asset for sale is their very very own information that is personal?
We’re dealing with a complete great deal of information right right here. Credit Karma, whoever company is built around a credit that is free application, boasts significantly more than a hundred million users. While those people don’t spend to use Credit Karma, they do start their information that is financial well while the types of behavioral and location information that other programs, like Twitter and Bing, track.