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.