FTC/DOJ inquiry escalates: HSR +14%/new rules/second requests/acquihires + state AGs
Key Questions
What are the new HSR rules and how do they impact deals?
New HSR rules add over 60 hours of work per deal amid a Q1 surge in filings. They increase scrutiny on transactions including acquihires and second requests like IonQ-SkyWater.
Why is Google DeepMind involved in an $80-90M acquihire?
Google DeepMind paid up to $90 million to hire contextual AI talent from Contextual AI amid growing antitrust scrutiny. This is flagged as an acquihire via license structure.
What is the status of the Arm FTC probe?
The FTC is examining whether Arm could restrict or degrade access to key processor technology through its chip licensing practices.
How are state AGs increasing antitrust enforcement?
State attorneys general are ramping up subpoenas and investigations on mergers and AI consolidation, following the Activision $250M settlement. They are seizing more initiative as federal enforcement eases.
What do the new Antitrust Collaboration Guidelines cover?
The guidelines address data sharing, algorithmic pricing, and competitor collaborations, with a comment deadline approaching. They may reshape practices in healthcare and tech sectors.
What remedies are active for Google in antitrust cases?
Google remedies are active and include requirements around data sharing that could affect tuck-in acquisitions and ongoing enforcement actions.
How does the Activision settlement affect future deals?
The nearly four-and-a-half-year legal fallout from Microsoft's Activision acquisition ended with a $250M settlement, signaling stronger state-level involvement in merger reviews.
Are nonexclusive licenses subject to HSR filings?
Entry into a nonexclusive license is generally not subject to an HSR filing regardless of price paid, though transactions structured to avoid filing may still face avoidance scrutiny.
New HSR rules add 60+ hrs/deal amid Q1 surge; IonQ-SkyWater second request; acquihires via licenses flagged (Google DeepMind $80-90M Contextual AI); Arm FTC probe; Google remedies active. State AGs ramp subpoenas/investigations on mergers and AI consolidation post-Activision $250M settlement. New Antitrust Collaboration Guidelines on data sharing/algorithmic pricing.