Antitrust

Big Tech deserves Wall Street-like global cop

21 May 2019

The G20 helped rein in systemically risky banks after the financial crisis by creating the Financial Stability Board to develop new rules. Adapting that approach to set up an Internet Accountability Board would be a smart way to police the likes of Facebook, YouTube and Twitter.

T-Mobile US wins game of national champions

20 May 2019

Its $26 bln merger with rival telecom Sprint is likely to be approved. There was little reason to block it. Still, taken with a U.S. ban on China’s Huawei and last year’s nixing of a bid for chipmaker Qualcomm, it’s clear keeping 5G in American hands is now a national priority.

Viewsroom: The lasting effects of Trump’s tariffs

16 May 2019

Washington and Beijing may yet find a way to end their escalating trade war soon. But for many businesses, the damage already inflicted will be hard to undo. Plus: CEO Mark Zuckerberg might not welcome more calls to break up Facebook, but shareholders could benefit.

Apple monopoly ruling is small slice of humble pie

13 May 2019

A group of iPhone owners is free to sue Tim Cook’s company over their claim it charges too-high prices for apps in its store, the top U.S. court has ruled. A lawsuit could still take years. Even so, small defeats like this can add up. There are many ways to peel an Apple.

Facebook investors could benefit from a breakup

10 May 2019

The $532 bln group’s co-founder wants U.S. regulators to undo its WhatsApp and Instagram deals. Those units are hard to value and spinning them off would be costly. Yet valuations of peers like Snap and Twitter imply that Facebook could be worth 20% more once carved into three.

The Exchange: Margrethe Vestager

7 May 2019

The EU’s antitrust commissioner is famous for imposing multi-billion-dollar fines on Alphabet and Apple. She joins Liam Proud and Peter Thal Larsen to explain why combatting the greed, power and fear that stifles competition is even more crucial in a data-driven world.

UK supermarket M&A will return in bargain bin

25 Apr 2019

The competition watchdog blocked Sainsbury’s proposed $9 bln takeover of Asda. CEO Mike Coupe has few palatable options to cope with German discounters and the revival of UK peers. Deal fever will resurface after the rot sets in and the grocer’s share price has fallen further.

T-Mobile and Sprint can bear antitrust pain

16 Apr 2019

The telecom firms have yet to convince U.S. officials over their $88 bln merger. They may have to make cuts, like selling T-Mobile’s prepaid unit or spectrum. Bigger rivals Verizon and AT&T are already diversifying. Unless trustbusters get draconian, combining is the best bet.

Netflix gives a new meaning to “Hollywood ending”

3 Apr 2019

A proposal to require that movies be shown in theaters for a set time to be eligible for Oscars may be illegal, the U.S. antitrust chief warned. It’s odd the DOJ cares, but it has a point. Such tactics show how much streaming services like Netflix threaten Tinseltown’s old guard.

Google fines make case for tougher antitrust curbs

20 Mar 2019

Europe has hit the Alphabet unit with its third penalty in less than two years, taking the toll to over $9 bln. That sum pales against the $600 bln the firm has added to its market cap since the investigations began in 2010. Both sides are being pushed to a bigger showdown.

Spotify pitches Apple lament to easy EU audience

14 Mar 2019

The Swedish music service filed a European Commission complaint alleging that its rival’s payments system hurts competition. It may take years, but the EU has pursued similar cases against the likes of Google. It’s also well timed given the growing backlash against U.S. Big Tech.

RWE’s German carve-up looks better than E.ON’s

14 Mar 2019

A year after a 17 bln euro asset swap, the German utilities’ deal is in Brussels’ antitrust sights. It’s more an issue for E.ON, which may lose out if forced disposals erode hoped-for cost savings. RWE, meanwhile, seems to have chosen the right time to bulk up in renewables.

Big Tech’s best bet is to friend U.S. regulation

11 Mar 2019

The push to rein in Silicon Valley giants is intensifying. Elizabeth Warren, a White House contender, wants to break up Amazon and others. Tougher rules protecting users and privacy could stave that off. Those fighting constraints rather than trying to shape them may regret it.

Tech giants get glimpse of watchdog’s M&A bazooka

27 Feb 2019

The U.S. FTC is creating a body to police anticompetitive behavior in Silicon Valley, and isn’t ruling out the possibility of breakups. While unwinding mergers would be extraordinary, the mere threat would be a useful weapon as the agency investigates Facebook’s privacy breaches.

Now AT&T has to make its business case

26 Feb 2019

The U.S. telco won its legal battle, with an appeals court upholding the legality of the firm’s $85 bln acquisition of Time Warner. Clearing that hurdle is a relief for boss Randall Stephenson. Next up is persuading investors the deal and the huge related debt load make sense.

Franco-German industry push sullies EU principles

21 Feb 2019

The two biggest euro zone countries want to limit the European Commission’s antitrust powers, and subsidise strategic sectors. Their fear of Chinese dominance is fair. Yet the reforms may help governments to prop up national champions, and undermine the bloc’s single market.

Verisign may be the real dot-com monopoly

19 Feb 2019

Facebook, Google and others are under fire for social-media dominance. But $21 bln Verisign exclusively manages .com domains. The U.S. government just extended its contract and allowed price increases. With a 63 pct operating margin in 2018, it’s already sitting on a gold mine.

EU risks picking wrong fight with foreign giants

13 Feb 2019

France and Germany want to help companies fend off Chinese and U.S. behemoths by merging. Yet Europe’s fragmented markets and limited state subsidies mean it will never win the size game. Better to double down on strict antitrust rules while blocking unfair foreign buyers.

Derailed train M&A spells poor EU antitrust revamp

6 Feb 2019

Competition tsar Margrethe Vestager blocked Siemens and Alstom’s rail merger in defiance of Franco-German pressure. Paris and Berlin are agitating for rule changes and may back a replacement who will be more willing to create regional champions. That would be a mistake.

Siemens-Alstom is poor advert for EU champions

5 Feb 2019

German and French politicians are annoyed because the rail merger may be blocked. But their argument that the deal is needed to shield Europe from Chinese competition is flawed. The duo’s workers may also suffer. This is the wrong regional standard-bearer to promote.