Antitrust

Silicon Valley models value of noncompete ban

24 Apr 2024

A new FTC rule forbids US companies from stopping employees joining a rival, or starting one. Freeing up opportunities for a fifth of the workforce should boost pay. California’s tech hub also showcases other benefits of labor mobility. Intel, for example, exists because of it.

Kate Spade deal veto is lucky dip for trustbusters

23 Apr 2024

US competition cops want to stop Tapestry, owner of the handbag brand, from buying rival Capri. The $8.5 bln merger is a tempting target: well-known products, few political issues, and none of Big Tech’s mighty resources. That offers a chance to road-test novel legal theories.

UnitedHealth shows market power is double-edged

16 Apr 2024

The insurer’s reach in the US healthcare system drew an antitrust probe – and a ransomware attack that could cost $1.6 bln. It’s grist for trustbusters: dominance may let firms take their eye off the ball on cybersecurity, and make the systems that depend on them more fragile.

Market forces knock ominously on US realtors’ door

12 Apr 2024

Home buyers will soon find it easier to negotiate fees they pay to 1.5 mln agents – a move that might have happened earlier in a less distorted market. Some brokers will earn more. But the reforms are likely to shrink the fee pool, which is tricky for ancillary firms like Zillow.

Motor-racing deal faces quick antitrust pitstop

11 Apr 2024

F1 owner Liberty Media is doubling down on sports broadcasting rights with its $4.5 bln buy of MotoGP’s parent. CVC’s 2006 attempt to own both racing series got an EU antitrust black flag. The rise of streaming channels means mogul John Malone will have an easier ride this time.

US antitrust push invites creative dealmaking

4 Apr 2024

Policymakers and trustbusters are eyeing new restrictions on mergers and acquisitions. In this Viewsroom podcast, Breakingviews columnists unpack some imaginative workarounds being used by companies ranging from Big Tech to fast food.

Hermès lawsuit attacks luxury’s FOMO premium

26 Mar 2024

A suit against the $274 bln fashion house claims it’s so hard to buy a Birkin, it’s illegal, alleging the handbag’s must-have aura lets the company force purchases of unwanted extras. If successful, it could crimp both Hermès’ top growth areas and ultra-luxe goods’ mystique.

Apple antitrust case is surprisingly simple

21 Mar 2024

The US legal swipe at the $2.7 trln iPhone maker is all about choice. Users choose its devices, but not always the services on them. That shows up in small ways, like payments or how to install apps. In a new cloud-dominated world, returning choice to users will matter much more.

US Steel tug-of-war threatens to pull it apart

19 Mar 2024

Cleveland-Cliffs has put its rival in a bind, rallying political and labor opposition to a $14 bln agreed sale to Japan’s Nippon while pushing its own questionable takeover bid. No deal at all would be bad news for the target’s union workers. A carve-up might be inevitable.

Apple’s Epic fail powers up EU tech oversight cred

11 Mar 2024

The $2.6 trln firm quickly reversed its decision to close ‘Fortnite’ maker Epic Games’ developer account. Frowns from the EU, which is going after Big Tech via fresh laws, look to have played a role. The episode is as much a victory for the bloc’s credibility as it is for Epic.

EU’s $2 bln Apple bite is still more of a bark

4 Mar 2024

Brussels is fining the US giant more than expected for hurting streaming competition. That leaves $2.7 trln Apple open to similar cases. But as with other EU bids to rein in Big Tech, it hikes the cost of doing business more than it shakes up the sector.

Stephen King ghost-writes trustbusting bestseller

27 Feb 2024

The US FTC is suing to block the $25 bln merger of grocers Kroger and Albertsons partly because of perceived harm to union labor. It resembles, oddly enough, a winning DOJ lawsuit over Penguin’s deal to buy Simon & Schuster. The case has a good shot at becoming a horror classic.

Big Tech and AI get too close for comfort

29 Jan 2024

Microsoft, Amazon, Nvidia and Alphabet alone contributed about a third of the $70 bln raised by data and artificial intelligence startups last year. Some of the investments could turn into revenue generators. Mounting regulatory and financial risks also might offset the benefits.

Spirit deal loss eases anxiety for everyone else

16 Jan 2024

A judge grounded JetBlue’s $4 bln purchase of the ultra-cheap carrier. The defeat avoided a potentially unprecedented intervention by regulators that would have clouded the industry, while affirming antitrust blowback. But Spirit’s shares halved, for good reason.

T-Mobile’s climb to top dog risks winner’s curse

8 Jan 2024

The US telecom’s decade-long rise, sealed by 2020’s Sprint merger, has lapped rivals AT&T and Verizon and triggered an $8 bln payout for backer SoftBank. The tie-up threatened unshakable dominance. But now, newer cable entrants may wrench open the market much as T-Mobile did.

Dead power deal shows limits of M&A futurology

2 Jan 2024

Avangrid and PNM have given up on a $8 bln merger after three years of waiting for regulatory approval. Yet investors repeatedly priced the target as if the tie-up were in the bag. Political twists can easily wrong-foot arbitrageurs. Trouble is, such twists may get more common.

Antitrust legendarily unpredictable despite Epic

12 Dec 2023

A jury ruled against Google in a case brought by the gaming firm while an emboldened FTC blocked Sanofi from snagging a new drug. Yet Pfizer is pushing ahead with a $43 bln deal. Rainmakers can be comforted that regulators’ front offices aren’t a totally impenetrable barrier.

Broadcom can brave China’s sword of Damocles

31 Oct 2023

The chipmaker expects to seal its strategically shaky VMware deal as Beijing’s blessing pends amid escalating geopolitical tension. In 17 months of waiting, however, its rising shares have lifted the purchase price by 16%, to $80 bln. Boss Hock Tan is better off taking the blade.

US oil deals create big fish in vast ocean

30 Oct 2023

Exxon’s $60 bln deal for Pioneer and Chevron’s $53 bln Hess offer will make the giants even bigger. But they will only have 12% of US petroleum production and 5% of global share. Success depends on higher commodity prices. Big Oil may not control as much as it wants.

CFPB opponents gamble with US financial stability

3 Oct 2023

The 12-year-old consumer finance watchdog has amassed powerful enemies, partly because of combative boss Rohit Chopra. But a Supreme Court challenge to its funding threatens other regulators like the Fed too. Making crisis-fighting departments beg Congress for cash is dangerous.