DOJ Sues to Block On-line Tax Preparation Software Merger

The Antitrust Division has sued to block H&R Block’s acquisition of TaxACT, an on-line software provider.  H&R and TaxACT are the number 2 and 3 providers of on-line tax prep software behind Intuit’s TurboTax.  The Division explained that it uncovered H&R Block documents indicating that the purpose of the merger was to eliminate a competitor and allow it to increase prices.  The parties offered not to increase TaxAct’s prices, but the Division remained concerned that H&R Block could reduce the quality of the TaxACT product, allowing it to raise the price of its own on-line tax prep software.

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