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 11:33 PM

BRUSSELS (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 $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 >
Walmart asks China suppliers for price cuts on Trump tariffs, Bloomberg News reports
Walmart asks China suppliers for price cuts on Trump tariffs, Bloomberg News reports
Mar 6, 2025
(Reuters) - Walmart ( WMT ) has asked some Chinese suppliers for major price cuts, with the U.S. retail giant's efforts to shift the burden of President Donald Trump's tariffs facing strong push back from firms in the Asian nation, Bloomberg News reported on Thursday. Certain suppliers, including makers of kitchenware and clothing, have been asked to lower their prices...
BP says CEO Auchincloss's pay package fell to 5.4 million pounds in 2024
BP says CEO Auchincloss's pay package fell to 5.4 million pounds in 2024
Mar 6, 2025
LONDON (Reuters) - BP's CEO Murray Auchincloss earned 5.4 million pounds ($6.95 million) last year, the group said in its annual report on Thursday, down from 8 million pounds in 2023. The group said it paid no bonuses on the basis of financial performance. BP's profits for last year were 35% lower than the previous year's at $8.9 billion, and...
Canadian Natural Resources reports fall in fourth-quarter profit
Canadian Natural Resources reports fall in fourth-quarter profit
Mar 6, 2025
March 6 (Reuters) - Oil and gas company Canadian Natural Resources ( CNQ ) on Thursday posted a fall in fourth-quarter profit as weaker commodity prices overshadowed a rise in production. The Calgary, Alberta-based company's net income fell to C$1.14 billion ($794.76 million), or 54 Canadian cents per share, in the three months ended December 31, from C$2.63 billion, or...
Walmart asks China suppliers for price cuts on Trump tariffs, Bloomberg News reports
Walmart asks China suppliers for price cuts on Trump tariffs, Bloomberg News reports
Mar 6, 2025
March 6 (Reuters) - Walmart ( WMT ) has asked some Chinese suppliers for major price cuts, with the U.S. retail giant's efforts to shift the burden of President Donald Trump's tariffs facing strong push back from firms in the Asian nation, Bloomberg News reported on Thursday. Certain suppliers, including makers of kitchenware and clothing, have been asked to lower...
Copyright 2023-2026 - www.financetom.com All Rights Reserved