Mergers in Big Tech

Foreword Mergers in Big Tech: Recent developments in EU and national case law New

Several recent works document mergers in digital markets with a particular focus on Big Tech acquisitions. They aim to quantify the levels of merger activity, the type of merger activity, and the possible motivations for the merger. In the policy debate, some commentators see entry and mergers as proof of vibrant competition in which firms compete through investments and acquisitions, while others emphasize that these mergers are potentially anti-competitive and harmful to consumers, in particular, when the acquiring party is a gatekeeper platform. There is now also a footprint left by competition authorities evaluating some of these mergers, which opens the room for detailed ex-post assessments of individual merger decisions. Where do we stand?

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University of Mannheim
Germany 6 contributions 16532 visits

Mergers

 The UK Competition Authority clears the acquisition of a video game producer by a Big Tech company following divestiture commitments (Microsoft / Activision Blizzard) Free
UK Competition & Markets Authority - CMA (London)
United Kingdom 407 contributions 100927 visits
Microsoft concession a gamechanger that will promote competition* The new deal for Microsoft to buy Activision without cloud gaming rights has been cleared after the CMA concluded it would preserve competitive prices and better services. Deal to buy Activision without cloud gaming rights (...)

The UK Competition Authority opens a consultation on the remedies offered by a Big Tech company in its renewed bid to acquire a video game producer (Microsoft / Activision Blizzard)
UK Competition & Markets Authority - CMA (London)
United Kingdom 407 contributions 100927 visits
New Microsoft/Activision deal addresses previous CMA concerns in cloud gaming* The sale of Activision’s cloud gaming rights to Ubisoft substantially addresses previous concerns and opens the door to the deal being cleared, the CMA said today. While the CMA has identified limited residual (...)

The UK Competition Authority initiates a Phase 1 investigation into a restructured deal concerning the acquisition of a video game producer by a Big Tech company (Microsoft / Activision Blizzard)
UK Competition & Markets Authority - CMA (London)
United Kingdom 407 contributions 100927 visits
Microsoft submits new deal for review after CMA confirms original deal is blocked* The CMA has opened a new phase 1 investigation into a new, restructured deal by Microsoft to buy Activision. CMA finalises decision to block original merger after rejecting submissions by Microsoft to (...)

The New Zealand Competition Authority clears the acquisition of a video game producer by a Big Tech company (Microsoft / Activision Blizzard)
New Zealand Commerce Commission (Wellington)
New Zealand 180 contributions 25186 visits
Commerce Commission gives clearance for Microsoft to buy Activision* The Commerce Commission has granted clearance for Microsoft Corporation to acquire 100% of the common stock of Activision Blizzard. Both Microsoft and Activision are developers, publishers and distributors of video games (...)

The EU Commission opens an in-depth investigation into the proposed acquisition of a robot vacuum cleaner manufacturer by a Big Tech firm (iRobot / Amazon)
European Commission - DG COMP (Brussels)
Belgium 1361 contributions 2922012 visits
Mergers: Commission opens in-depth investigation into the proposed acquisition of iRobot by Amazon* The European Commission has opened an in-depth investigation to assess, under the EU Merger Regulation, the proposed acquisition of iRobot by Amazon. The Commission is concerned that the (...)

The EU Commission acknowledges a privacy lobbyist as an interested third party in its review of a Big Tech merger (Amazon / iRobot)
Hausfeld (London)
United Kingdom 5 contributions 1789 visits
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Hausfeld (London)
Royaume-Uni 3 contributions 1181 visites
A legal and technical analysis of the data impacts of the merger carried out by Privacy International (PI) suggests that the merger would threaten competition in and across several potential markets. In its submissions to the EU Commission (EC), which granted it interested third party status (...)

The New Zealand Competition Authority publishes a Statement of Issues relating to an acquisition application from a Big Tech company (Microsoft / Activision Blizzard)
New Zealand Commerce Commission (Wellington)
New Zealand 180 contributions 25186 visits
Statement of Issues released for Microsoft’s proposed acquisition of Activision* The Commerce Commission has published a Statement of Issues relating to an application from Microsoft seeking clearance to acquire Activision Blizzard. The Statement of Issues outlines the Commission’s (...)

The UK Competition Authority clears the acquisition of a consumer robots designer by a global online marketplace (Amazon / iRobot)
UK Competition & Markets Authority - CMA (London)
United Kingdom 407 contributions 100927 visits
Amazon’s purchase of Roomba maker cleared by CMA* Online retailer Amazon.com Inc. (Amazon) announced its proposed purchase of iRobot Corporation (iRobot) in August 2022. iRobot designs and builds consumer robots, including robot vacuum cleaners sold under the ‘Roomba’ brand. The (...)

The South Korean FTC grants unconditional approval for a merger between a global provider of gaming consoles and a game developer (Microsoft / ABK)
Korea Fair Trade Commission (Seoul)
North Korea 11 contributions 579 visits
KFTC grants unconditional approval to Microsoft-ABK merger* No competitive concerns raised in the Korean gaming market trough exclusive supply of ABK games Assessments vary among countries as competitive situation in each country’s gaming market differs The Korea Fair Trade Commission (led (...)

The UK Competition Appeal Tribunal announces the receipt of an application to review the Competition Authority’s decision to prohibit the acquisition of a leading video game publisher (Microsoft / Activision Blizzard)
Arthur Cox (Dublin)
Ireland 6 contributions 3071 visits
This article discusses how the CMA has reached a ‘tipping point’ in ‘Big Tech’ merger enforcement, what the Competition Appeals Tribunal could do in Microsoft v Competition and Markets Authority to recentre and refocus the CMA’s work, and why this all matters to digital markets, and beyond. (...)

The EU Commission conditionally approves the acquisition of a leading video game publisher by a Big Tech company (Microsoft / Activision Blizzard)
European Commission - DG COMP (Brussels)
Belgium 1361 contributions 2922012 visits
Mergers: Commission clears acquisition of Activision Blizzard by Microsoft, subject to conditions* The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of Activision Blizzard (‘Activision’) by Microsoft. The approval is conditional on full compliance (...)

The UK Competition Authority blocks a $68.7B deal to acquire a leading video game publisher (Microsoft / Activision Blizzard)
Van Bael & Bellis (London)
United Kingdom 3 contributions 299 visits
On 26 April 2023, the UK Competition and Markets Authority (CMA) blocked Microsoft’s $68.7 billion deal to buy Activision, a leading video games publisher, citing concerns that the deal would distort competition on the nascent cloud gaming market and ultimately lead to reduced innovation and (...)

The UK Competition Authority blocks the proposed acquisition of a leading video game publisher by a Big Tech company (Microsoft / Activision Blizzard)
McDermott Will & Emery (Brussels)
Belgique 23 contributions 5122 visites
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McDermott Will & Emery (Dusseldorf)
Germany 14 contributions 5278 visits
On April 26, 2023, the Competition and Markets Authority (CMA) blocked what would otherwise have been the largest deal in the gaming industry to date. The decision highlights several important trends, such as: In dynamic markets, regulators are focusing in on whether a deal harms or could harm (...)

The UK Competition Authority rejects the proposed commitments of a Big Tech company and blocks its proposed acquisition of a leading video game publisher (Microsoft / Activision Blizzard)
UK Competition & Markets Authority - CMA (London)
United Kingdom 407 contributions 100927 visits
Microsoft / Activision deal prevented to protect innovation and choice in cloud gaming* The CMA has prevented Microsoft’s proposed purchase of Activision over concerns the deal would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for (...)

The Australian Competition Authority provides important new details on the proposed change of Australia’s merger control laws
Ashurst (Brisbane)
Australia 6 contributions 645 visits
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Ashurst (Sydney)
Australia 9 contributions 2949 visits
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Ashurst (Sydney)
Australia 5 contributions 524 visits
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The ACCC continues to push for Australia to join the ’mandatory and suspensory’ merger control club, in common with the majority of other jurisdictions around the world What you need to know On 12 April 2023, the ACCC Chair, Gina Cass-Gottlieb, provided important new details about the ACCC’s (...)

The Australian Competition Authority refines its proposals for reforming the national merger regime
King & Wood Mallesons (Melbourne)
Australia 3 contributions 150 visits
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King & Wood Mallesons (Melbourne)
Australia 2 contributions 78 visits
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Slaughter and May (London)
United Kingdom 2 contributions 78 visits
While the ACCC continues to believe that Australia’s current merger laws aren’t fit for purpose, it appears to have refined its thinking on aspects of the proposals first unveiled in August 2021, following comments made by ACCC Commissioner Stephen Ridgeway during a keynote discussion at the (...)

The EU Commission clears the acquisition of an online homework and study help app company by a Big Tech (Photomath / Google)
European Commission - DG COMP (Brussels)
Belgium 1361 contributions 2922012 visits
Mergers: Commission clears acquisition of Photomath by Google* The European Commission has approved unconditionally, under the EU Merger Regulation, the proposed acquisition of Photomath, Inc. (‘Photomath’) by Google LLC (‘Google’). The Commission concluded that the transaction would raise (...)

The UK Competition Authority narrows the scope of concerns in its phase 2 review of a merger between a Big Tech company and a leading video game publisher (Microsoft / Activision Blizzard)
UK Competition & Markets Authority - CMA (London)
United Kingdom 407 contributions 100927 visits
CMA narrows scope of concerns in Microsoft – Activision review* The CMA has today issued updated provisional findings in its assessment of Microsoft’s proposed acquisition of Activision. New evidence provisionally alleviates concerns in relation to supply of gaming consoles in the UK (...)

The US FTC abandons its challenge to the acquisition of a virtual reality fitness app by a social media giant following a District Court’s denial of its request for a preliminary injunction (Meta / Within)
Weil, Gotshal & Manges (Washington)
United States 2 contributions 600 visits
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Weil, Gotshal & Manges (Washington)
United States 1 contribution 82 visits
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Weil, Gotshal & Manges (New York)
United States 1 contribution 82 visits
On February 24, 2023, the Federal Trade Commission officially dismissed its administrative challenge to Meta Platforms, Inc.’s acquisition of Within Unlimited, Inc. (Within), the company behind the virtual reality (VR) fitness application, Supernatural. The move by the FTC came less than a (...)

The UK Competition Authority provisionally holds that the $68.7B acquisition of a gaming firm will lead to higher prices and fewer choices for UK gamers (Microsoft / Activision)
UK Competition & Markets Authority - CMA (London)
United Kingdom 407 contributions 100927 visits
Microsoft – Activision deal could harm UK gamers* A CMA investigation has provisionally concluded that Microsoft’s proposed acquisition of Activision could result in higher prices, fewer choices, or less innovation for UK gamers. In-depth independent investigation provisionally finds deal (...)

The Italian Competition Authority releases guidance on how it intends to apply its merger-review powers to transactions that do not meet the requisite thresholds
Portolano Cavallo (Milan)
Italy 63 contributions 10280 visits
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Portolano Cavallo (Milan)
Italy 36 contributions 7077 visits
On December 27, 2022, the Italian Competition Authority (the “AGCM” or “Authority”) published a notice (“Notice”) setting forth procedural rules for application of Article 16, paragraph 1-bis, of Law No. 287/90 (“Italian Competition Act”), which was introduced by Article 32 Law No. 118 of (...)

The US FTC seeks to block a Big Tech company’s acquisition of a video game publisher (Microsoft / Activision Blizzard)
US Federal Trade Commission (FTC) (Washington)
United States 182 contributions 42903 visits
FTC Seeks to Block Microsoft Corp.’s Acquisition of Activision Blizzard, Inc.* Agency alleges that maker of Xbox would gain control of top video game franchises, enabling it to harm competition in high-performance gaming consoles and subscription services by denying or degrading rivals’ (...)

The Higher General Court of Düsseldorf objects to the interpretation of transaction value threshold under the German merger control regime by the Competition Authority (Meta / Kustomer)
Herbert Smith Freehills (Düsseldorf)
Germany 23 contributions 6020 visits
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Herbert Smith Freehills (Düsseldorf)
Germany 17 contributions 4611 visits
In a recently published judgment, the Higher General Court of Düsseldorf has objected to the interpretation of the transaction value threshold under the German merger control regime by the Federal Cartel Office (Judgment of 23 November 2022 – Kart 11/21 (V)). The judgment provides helpful (...)

The German Higher Regional Court of Düsseldorf provides guidance on when a target has “significant domestic activities” under the transaction value threshold for domestic merger notifications (Meta / Kustomer)
Georgetown University Law Center (Washington)
United States 1 contribution 93 visits
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Van Bael & Bellis (Brussels)
Belgium 3 contributions 299 visits
On 23 November 2022, in appeal proceedings lodged by Meta against a decision of the German Federal Cartel Office (“FCO”) relating to its acquisition of Kustomer, the Higher Regional Court of Düsseldorf (the “Court”) provided guidance on the interpretation of the criterion of “significant (...)

The EU Commission opens an in-depth investigation into the proposed acquisition of a leading video game company by a Big Tech company due to foreclosure concerns (Microsoft / Activision Blizzard)
European Commission - DG COMP (Brussels)
Belgium 1361 contributions 2922012 visits
Mergers: Commission opens in-depth investigation into the proposed acquisition of Activision Blizzard by Microsoft* The European Commission has opened an in-depth investigation to assess the proposed acquisition of Activision Blizzard by Microsoft under the EU Merger Regulation. The (...)

The UK Competition Authority orders a Big Tech company to sell a GIF database on the belief that permitting the merger would limit innovation and reduce competition in the display advertising market (Meta / Giphy)
UK Competition & Markets Authority - CMA (London)
United Kingdom 407 contributions 100927 visits
CMA orders Meta to sell Giphy* The CMA finds that Meta’s purchase of Giphy would limit choice for UK social media users and reduce innovation in UK display advertising. The Competition and Markets Authority (CMA) has found that Meta’s takeover of Giphy could allow Meta to limit other (...)

The Brazilian Competition Authority clears the acquisition of a leading video game publisher by a Big Tech company (Microsoft / Activision Blizzard)
Brazilian Administrative Council for Economic Defense (CADE) (Brasilia)
Brazil 75 contributions 21654 visits
CADE clears Microsoft’s acquisition of Activision Blizzard* The transaction still depends on the decisions of foreign jurisdictions This past Wednesday (5 October), the Office of the Superintendent General, the investigative arm of the Administrative Council for Economic Defense (CADE), (...)

The UK Competition Authority decides to refer a potential merger between a Big Tech company and a leading video game publisher for a Phase II investigation (Microsoft / Activision Blizzard)
UK Competition & Markets Authority - CMA (London)
United Kingdom 407 contributions 100927 visits
Microsoft / Activision deal could lead to competition concerns* The Competition and Markets Authority (CMA) is concerned that Microsoft’s anticipated purchase of Activision Blizzard could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming (...)

Mergers in Big Tech: An overview of EU and national case law
European Commission - DG COMP (Brussels)
Italy 4 contributions 14685 visits
Over the last decade, digital markets have become increasingly concentrated, not only because of their specificity, which makes them prone to the well-known “winner-takes-all” effect, but also due to mergers and acquisitions. Evidence-based analyses have proven that over the last few years, (...)

The Australian Competition Authority approves the acquisition of a cyber security consultancy and provider of cyber security products by a Big Tech search engine (Google / Mandiant)
Australian Competition and Consumer Commission (Canberra)
Australia 397 contributions 84196 visits
Google’s acquisition of Mandiant not opposed* The ACCC will not oppose the proposed acquisition of Mandiant, Inc. by Google LLC. Mandiant supplies cybersecurity consulting services, specialising in incident response, and other cybersecurity products. Google supplies software and (...)

The US FTC files an action to block the acquisition of a virtual reality app developer by a social media giant (Meta / Within)
Vinson & Elkins (Washington)
United States 2 contributions 69 visits
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Vinson & Elkins (Washington)
United States 1 contribution 39 visits
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Vinson & Elkins (Washington)
United States 1 contribution 39 visits
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On July 27, 2022, the Federal Trade Commission (“FTC”) voted 3-2 to sue in federal district court to block Meta Platforms, Inc.’s (“Meta”) acquisition of Within Unlimited, Inc. (“Within”), a virtual reality (“VR”) app developer. In authorizing the complaint, the commissioners took the unusual (...)

The US FTC seeks to block a Big Tech company’s acquisition of a popular virtual reality fitness app (Meta / Within)
US Federal Trade Commission (FTC) (Washington)
United States 182 contributions 42903 visits
FTC Seeks to Block Virtual Reality Giant Meta’s Acquisition of Popular App Creator Within* Agency Alleges that Meta and CEO Mark Zuckerberg are Attempting Illegal Acquisition to Expand Virtual Reality Empire The Federal Trade Commission is seeking to block virtual reality giant Meta and (...)

The New Zealand Competition Authority issues a Statement of Preliminary Issues over the proposed acquisition of a video game publisher by a Big Tech company (Microsoft / Activision Blizzard)
New Zealand Commerce Commission (Wellington)
New Zealand 180 contributions 25186 visits
Statement of Preliminary Issues released for Microsoft’s acquisition of Activision Blizzard* The Commerce Commission has published a Statement of Preliminary Issues relating to the clearance application for Microsoft Corporation (Microsoft) to acquire 100% of the shares in Activision (...)