Antitrust

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 Mar 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Jan 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 Jan 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 Dec 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.

T-Mobile Sprint antitrust defense has a hole in it

20 Dec 2019

America’s No. 3 and No. 4 telecom firms are fighting state regulators to keep their $26 bln deal on track. Federal watchdogs want to preserve competition by making the companies help Dish build a new fourth mobile carrier. That only works if Dish is up to the job. It may not be.

Margrethe Vestager will open tech’s walled garden

20 Dec 2019

The European antitrust chief’s multibillion-dollar fines had little impact on the 12-digit market values of Google, Facebook and others. She will weaken their grip on the internet more effectively in 2020 by imposing common standards that allow seamless use of rival platforms.

Viewsroom: Jack Dorsey’s heroic year ahead

19 Dec 2019

From banning political ads to developing cryptocurrency plans, the CEO of Twitter and Square has been politically more astute than rivals like Facebook. That sets him up for a good 2020. Also: the different ways that shareholders, the Fed and M&A bankers will tackle climate risk.

App stores are tech’s next Battle Royale

17 Dec 2019

Google and Apple collect enormous fees through their dominant online app stores. Those are coming under attack – Fortnite owner Epic Games is the latest to lob a grenade. If regulators seek new ways to challenge Silicon Valley, these distribution channels are an easy target.

EU single market is better exported than muzzled

4 Dec 2019

The Netherlands wants the European Union to apply state aid rules to companies backed by foreign governments. That would hike Chinese import prices. Yet Europe’s economic heft gives scope to negotiate, and is better than breaking EU rules to create Siemens-Alstom-style champions.

Guest view: Europe beating U.S. in antitrust race

26 Nov 2019

American regulators are getting ready to put big tech companies through their paces. But it’s Europe that has been keeping big companies in check for years – and other countries are starting to look to the EU for leadership. A new study shows the U.S. is falling badly behind.

YouTube spinoff would be a must-watch

15 Nov 2019

The video service is stifled under parent Alphabet, which is valued more like Twitter than faster-growing Netflix. Sharing a stable with search engine Google hurts both in dealing with separate regulatory probes. And Alphabet’s siloed setup means it’s part way to a split already.

Holding: Watchdogs may deserve two bites at deals

31 Oct 2019

Unwinding Facebook’s Instagram purchase or other previously cleared mergers seems unfair – and costly. Yet recent research shows many tie-ups have caused unforeseen harm. Allowing regulators limited do-overs would pass legal muster and could help consumers and investors alike.

Hadas: Different rules for new corporate giants

30 Oct 2019

Cheaper information and global markets have produced a new generation of vast and entrenched companies. Abuses of competitive power are likely, but old-style breakups don’t work. Lawmakers and enforcers need to monitor behaviour – and maybe even control prices.