FTC Scrutinizes Big Tech Acqui-Hire Deals for Possible Antitrust Circumvention

The FTC is investigating whether big tech firms use acqui-hires to bypass merger reviews. Chairman Andrew Ferguson said the agency is examining these practices.

Insights:
The Federal Trade Commission in the US USUS is beginning to examine acqui-hire practices by major technology firms to determine whether these arrangements are being used to circumvent mandatory merger review processes. During a Bloomberg Television interview, andrew ferguson, the Chairman of the FTC, announced that the agency is scrutinizing these deals to ensure they do not bypass antitrust oversight. These specific corporate strategies involve hiring the employees of a startup and licensing its technology without officially acquiring the entire company.
FILE PHOTO: A view of signage at the Federal Trade Commission (FTC) headquarters in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: A view of signage at the Federal Trade Commission (FTC) headquarters in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File Photo
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