Florida Launches Antitrust Probe Into FICO, Alleges Credit Score Giant Abused Monopoly Power
By CU Today Staff —
TALLAHASSEE, Fla.— Florida Attorney General James Uthmeier has opened an antitrust investigation into Fair Isaac Corp. (FICO), alleging the company may have abused its dominant position in the credit-scoring market by raising prices, suppressing competition and increasing borrowing costs for consumers. The attorney general's office issued a Civil Investigative Demand requiring the company to produce documents related to its business practices and market conduct, WTVX reported.
According to the attorney general's office, investigators are examining whether FICO violated the Florida Antitrust Act by using its market dominance to block competitors through exclusionary agreements with the three major credit bureaus, engaging in predatory pricing and product bundling, and imposing steep price increases that ultimately are passed on to consumers seeking mortgages, auto loans and other forms of credit. The subpoena also seeks internal analyses of FICO's market share, pricing history, communications regarding competitors and records previously produced in ongoing federal antitrust litigation. FICO has until Aug. 5 to respond, WTVX said.
The state investigation follows mounting scrutiny in Washington over FICO's pricing practices. Earlier this year, Sen. Josh Hawley launched his own investigation and urged the Federal Trade Commission to examine the company, arguing FICO controls roughly 90% of the business-to-business credit-scoring market and has leveraged that position to impose extraordinary price increases. Hawley said FICO doubled its mortgage credit-score fee this year to $10 per score, a move he estimated could add roughly $500 million in costs across the mortgage industry that ultimately would be borne by borrowers.
FICO has long maintained that its scores provide significant value to lenders and represent only a small portion of overall mortgage closing costs. However, the Florida investigation adds another layer of regulatory pressure as policymakers and industry groups continue to question whether the company's longstanding dominance—reinforced for decades by government-backed mortgage underwriting requirements—has allowed it to exercise monopoly pricing power at the expense of lenders and consumers.
Originally reported by CU Today.