What happened: Company mergers involving tech giants would face heightened scrutiny under new draft guidelines released by U.S. antitrust watchdogs on Wednesday. Details: The Department of Justice and the FTC proposed 13 guidelines to overhaul the rules governing mergers and acquisitions. The rules cover a variety of deals, including horizontal and vertical mergers, as well as those involving online platforms. They aim to stop companies from getting too big and foster competition, particularly in industries like tech. According to the agencies, if following an acquisition a company's market share exceeds 30%, enforcers might assume that the deal would harm competition. Why it matters: President Joe Biden signed an executive order in 2021 urging an update to the rules that determine if deals violate competition laws. The administration's aggressive antitrust approach aims to promote competition and curb the power of tech giants like Google, Meta, Apple, and Amazon. While U.S. antitrust enforcers have successfully blocked some major deals, they have faced tough losses, including a recent court ruling in favor of Microsoft's $69B deal to buy Activision Blizzard. Still, tech sector deal volumes have declined by over 50% this year, based on LSEG Deals Intelligence data. What's next: The new guidelines will be open for public comment for 60 days before they become final. While the guidelines themselves don't have the force of law, they would influence how courts view merger challenges.
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