Feb 18 (Reuters) - Data analytics giant Equifax ( EFX ) 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 ( EFX ) 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 ( EFX ) receives verification information through its contracts with payroll providers and major companies, the lawsuit said.

Greystone Mortgage and First Financial Lending said Equifax ( EFX ) 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 ( EFX ) 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 ( EFX ) 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 ( EFX ) income and employment services.

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

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

Murphy said Equifax's ( EFX ) 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 ( EFX ), U.S. District Court for the Eastern District of Pennsylvania, No. 2:24-cv-02260.

For plaintiffs: Katie Beran and Brian Ratner of Hausfeld; Bruce Gerstein and David Rochelson of Garwin Gerstein & Fisher; and Joshua Grabar of Grabar Law Office

For defendant: Leah Brannon and David Gelfand of Cleary Gottlieb Steen & Hamilton, and Christopher Casey of Duane Morris

Read more:

Equifax ( EFX ) hit with antitrust class action over work verification services