Equifax must face antitrust lawsuit over verification services

Feb 18 (Reuters) - Data analytics giant Equifax (EFX.N) must face a lawsuit by home mortgage lenders that accused it of monopolizing the market for electronic income and employment verification services, a federal judge in Philadelphia ruled on Tuesday.

U.S. District Judge John Murphy rejected Equifax's motion to dismiss the case brought by Greystone Mortgage and First Financial Lending, which alleged that the company used exclusive long-term deals with worker data sources to squelch competition.

Employers, landlords and lenders use electronic verification to review applicants’ income and employment information. Equifax receives verification information through its contracts with payroll providers and major companies, the lawsuit said.

Greystone Mortgage and First Financial Lending said Equifax is violating U.S. antitrust law by locking up data sources and blocking rival verification services from receiving the same work and income information.

Equifax in a statement defended its platform and said it will "continue to respond to this litigation through the appropriate legal channels."

Lawyers for the plaintiffs in a statement said they welcomed the judge's ruling and will be "developing the record to support our clients’ allegations concerning Equifax’s anticompetitive conduct."

The lawsuit was filed last May on behalf of a proposed class of at least tens of thousands of purchasers of Equifax’s income and employment services.

Greystone Mortgage and First Financial Lending said Equifax’s alleged monopolization has meant fewer options and higher prices for companies that rely on electronic verification.

The lawsuit also accused Equifax of using acquisitions to maintain unfair dominance.

Murphy said Equifax’s industry deals ultimately “may be more procompetitive than anticompetitive,” but he said that dispute is “for a different day.”

The judge set a March 25 hearing to address the next phase of the lawsuit.

The case is Greystone Mortgage Inc and First Financial Lending LLC v. Equifax Workforce Solutions LLC and Equifax Inc, U.S. District Court for the Eastern District of Pennsylvania, No. 2:24-cv-02260.