Antitrust

Bezos’s D.C. delivery hangs on lawmaker wish lists

28 July 2020

Amazon’s CEO faces his first congressional hearing, joining peers from Apple, Google and Facebook who have sat in the hot seat before. Those grillings were mostly grandstanding by ill-prepared politicians. If they have upped their game, Bezos and Co face more of a challenge.

Google strengthens as U.S. antitrust case weakens

14 July 2020

The Justice Dept may soon make its case against the unit of Alphabet, which is back to its pre-pandemic $1 trillion market value. With 90% market share in some areas, Google is a legitimate target. But by mixing political and economic aims, the DOJ risks tripping itself up.

Competing interests blur M&A regulation

1 July 2020

The U.S. government wants to curb a big jump in Chapter 11 filings in May. Dealmaking would help on that front. But agencies are also issuing antitrust guidelines that may make tie-ups harder. Jobs are at stake either way. It’s a trade-off between bailouts and consumer harm.

Agnellis can win twice from EU auto merger probe

29 June 2020

Brussels is worried the union of Peugeot and Fiat, controlled by the Italian clan, will dominate van sales. High margins make it hard to justify outsized market share. Selling models to a smaller rival like Agnelli-backed CNH would boost competition and let the merger pass.

Europe’s latest Apple bite is close to the core

16 June 2020

The EU’s antitrust tzar Margrethe Vestager worries that the $1.5 trln group’s app store and payments product hurt competition. With smartphones at saturation point, such add-on services underpin Apple’s rosy valuation. Shareholders should be more worried than in past probes.

EU’s data harpoon won’t be last shot at Amazon

11 June 2020

The European Commission may soon charge Jeff Bezos’s company over the alleged use of data gathered from third-party sellers to unfairly compete against them. Antitrust chief Margrethe Vestager may well already be lining up the next salvo, perhaps targeting Amazon's advertising.

Complacency is as much a disruptor as antitrust

8 June 2020

Big Tech critics credit the 1969 push to break up IBM for spurring the today’s software industry. But it was as much Big Blue’s shortsightedness that led to others’ power. As probes of newer tech companies ramp up, Microsoft, with similar challenges, tells a more promising story.

Tech giants dare antitrust deal watchdogs

1 June 2020

Facebook, Microsoft and Apple have been on a buying spree of small companies. U.S. regulators are examining such deals but their work has been hindered by Covid-19. Big Tech can argue some firms would fail otherwise. But the effect on consumers is a mixed bag.

Uber-Grubhub’s big obstacle is delivery not price

18 May 2020

Some to-and-fro over value is normal in a potential merger. But for two money-losing companies with volatile stocks, financial tweaks are a second-order issue. The more critical question about combining their meal-delivery operations is whether antitrust watchdogs would block it.

Uber-Grubhub may get stomachache from deal fuss

14 May 2020

A tie-up would create the top meal-delivery firm in major markets like New York, Boston and Chicago. Uber’s beefed up lobbying efforts might help federal approval, but even then state antitrust watchdogs may be concerned. It’s a tough taste test for the $57 bln ride-hailing app.

M&A protectionism could bite at worst time

6 March 2020

Cross-border deals are getting harder because of the White House’s America-first stance and tougher merger reviews, deal advisers say. Yet a blooming pandemic will make big companies more keen to cut costs and tighten control of their supply chains. It’s an unhelpful combination.

Morgan Stanley-E*Trade deal puts D.C. on the spot

20 February 2020

It’s the first major acquisition by a big bank in over a decade, which virtually guarantees political scrutiny. Yet regulators like the Fed seem amenable to financial mergers. Political detractors can’t easily sabotage the $13 bln deal, but they could upset the delicate timing.

Viewsroom: SoftBank in the crosshairs

13 February 2020

Activist Elliott is targeting Masayoshi Son’s firm for poor governance and performance. SoftBank could appease the hedge fund by selling investments to finance buybacks. That could include Sprint, whose deal with T-Mobile US just got the nod. Plus: the race for the White House.

Tech deal review puts VCs in regulatory purgatory

11 February 2020

Alphabet, Amazon and Facebook are among firms that will be providing data on tiny acquisitions to the FTC under new orders. Transformative deals are also worrying, though the ad hoc scrutiny of tech seems biased. It is the next impediment to VCs exiting investments.

T-Mobile US returns to Sprint deal with whip hand

11 February 2020

After a judge approved a merger of the telecoms firms, they now need to re-hash the terms. The best-case scenario is that Sprint still gets one-third of the merged company, worth $41 bln. But that looks ridiculous after its poor performance. It probably deserves $6 bln less.

Google is a sitting duck for U.S. antitrust

5 February 2020

Regulators are ramping up their probe of the Alphabet unit. It is at a disadvantage because it lacks a Trump ally like entrepreneur Peter Thiel, who is on Facebook’s board. Critics like Rupert Murdoch are close to the White House. Its hefty D.C. spending still falls short.

U.S. regulator deal policy is death by 1,000 cuts

3 February 2020

The FTC wants to stop the maker of Schick razors from buying Harry’s because it could stanch competition. That foretells trouble for deals like Google’s bid for Fitbit. Yet, T-Mobile US-Sprint was approved. Disruptors are complicated, but unpredictable policy isn’t an answer.

U.S. regulators toss another wrench into M&A

13 January 2020

Washington’s deal enforcers are rethinking four decades of antitrust oversight by proposing a new set of guidelines. The refresh is overdue and needed following the meddling in AT&T’s deal for Time Warner. But it adds questions to a market already fraught with uncertainty.

Mark Zuckerberg can be his own activist investor

6 January 2020

Keeping shareholders happy isn’t necessarily compatible with cleaning up data abuses and toxic content. But Facebook’s CEO needn’t change his professed ideals. He could change the company’s legal form so it can better serve society – and put his supervoting power to good use.

Team Trump will steal Warren’s tech thunder

26 December 2019

The Democratic presidential candidate has made breaking up Silicon Valley giants like Facebook and Amazon a key part of her campaign. But the White House could use a recent antitrust probe to make the case first, and effectively mute much of Warren’s roar.