financetom
Business
financetom
/
Business
/
Big Tech's acquihire deals face regulatory scrutiny, outgoing EU antitrust official says
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Big Tech's acquihire deals face regulatory scrutiny, outgoing EU antitrust official says
Jul 31, 2025 11:13 PM

BRUSSELS, Aug 1 (Reuters) - Big Tech deals to acquire

skills rather than major companies may soon come under the

regulatory scrutiny they previously avoided, the outgoing head

of the European Commission's antitrust unit said.

Acquihires, in which Big Tech hires start-ups' founders and

senior managers rather than acquire the companies, have been

viewed by antitrust regulators as an attempt to evade merger

rules.

"It is important to preserve effective competition," Olivier

Guersent, the director general at the competition unit, told

Reuters in an interview earlier this week and ahead of his

retirement on Thursday after a 33-year career tackling

antitrust, cartels and financial services.

He said the Commission was pushing national agencies with

call-in powers to act. Such powers, enjoyed by Denmark, Hungary,

Ireland, Italy, Sweden, Slovenia, Lithuania and Latvia, allow

them to refer below-EU threshold mergers to the EU enforcer.

"So we need to be patient and have enough member states that

have call-in provisions and use them. But we are working on it.

Within the ECN, we are actively encouraging it to do so,"

Guersent said. The European Competition Network is a forum for

cooperation between the Commission and national regulators.

Guersent said acquihires can be considered a merger as staff

are part of a company's assets.

Instances include Microsoft's ( MSFT ) $650 million deal to

hire most of AI start-up Inflection's staff, including its

co-founders and Google's poaching of employees from

chatbot startup Character.AI, both last year.

Last month Google hired staff members from AI code

generation startup Windsurf.

Amazon hired AI firm Adept's co-founders and some of its

team in June last year, while Meta poached data-labelling

startup Scale AI's CEO in June after taking a multi-billion

dollar stake.

Guersent, who spearheaded the EU's landmark Digital Markets

Act that aims to curb Big Tech's power, said the results were

encouraging.

"It made a difference in fields in which decades of

antitrust enforcement have not managed to make a difference," he

said.

"Did it change everything as much as we would have liked?

Probably not. So that's why success is always relative," he

said, contrasting Apple's changes to its closed ecosystem with

Meta's pushback.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Calix Q4 Non-GAAP Earnings, Revenue Fall; Q1 Outlook Set -- Shares Rise After Hours
Calix Q4 Non-GAAP Earnings, Revenue Fall; Q1 Outlook Set -- Shares Rise After Hours
Jan 29, 2025
05:54 PM EST, 01/29/2025 (MT Newswires) -- Calix (CALX) reported Q4 non-GAAP net income late Wednesday of $0.08 per diluted share, down from $0.43 a year earlier. Analysts polled by FactSet expected $0.07. Revenue for the quarter ended Dec. 31 fell to $206.1 million from $264.7 million a year earlier. Analysts surveyed by FactSet expected $203.9 million. For Q1, the...
Two Harbors Investment Swings to Q4 Earnings
Two Harbors Investment Swings to Q4 Earnings
Jan 29, 2025
06:00 PM EST, 01/29/2025 (MT Newswires) -- Two Harbors Investment ( TWO/PA ) reported Q4 earnings available for distribution of $0.20 per diluted share, compared with a loss of $0.11 a year earlier. Analysts surveyed by FactSet expected normalized earnings of $0.39. Net interest income for the quarter ended Dec. 31 was -$34.9 million, compared with -$45.7 million a year...
Teradyne Q4 Adjusted EPS, Revenue Rise; Sets Q1 Guidance
Teradyne Q4 Adjusted EPS, Revenue Rise; Sets Q1 Guidance
Jan 29, 2025
05:43 PM EST, 01/29/2025 (MT Newswires) -- Teradyne ( TER ) reported Q4 adjusted earnings late Wednesday of $0.95 per diluted share, up from $0.79 a year earlier. Analysts polled by FactSet expected $0.91. Net revenue for the quarter ended Dec. 31 was $752.9 million, compared with $670.6 million a year earlier. Analysts surveyed by FactSet expected $740.8 million. For...
Raymond James quarterly profit soars on capital market, wealth management strength
Raymond James quarterly profit soars on capital market, wealth management strength
Jan 29, 2025
Jan 29 (Reuters) - Raymond James Financial ( RJF ) reported a 19.5% rise in first-quarter profit on Wednesday, bolstered by strong performance in its capital markets and wealth management businesses. The results extend a sturdy performance by U.S. banks in the last three months of 2024 on expectations of a more friendlier regulatory environment under President Donald Trump for...
Copyright 2023-2026 - www.financetom.com All Rights Reserved