{"id":341380,"date":"2021-09-17T17:37:03","date_gmt":"2021-09-17T14:37:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftc-accuses-big-tech-of-using-merger-loopholes-to-dodge-antitrust-scrutiny\/"},"modified":"2021-09-17T17:37:03","modified_gmt":"2021-09-17T14:37:03","slug":"ftc-accuses-big-tech-of-using-merger-loopholes-to-dodge-antitrust-scrutiny","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftc-accuses-big-tech-of-using-merger-loopholes-to-dodge-antitrust-scrutiny\/","title":{"rendered":"#FTC accuses Big Tech of using merger \u2018loopholes\u2019 to dodge antitrust scrutiny"},"content":{"rendered":"<p>&#8220;<strong>#FTC accuses Big Tech of using merger \u2018loopholes\u2019 to dodge antitrust scrutiny<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Big tech companies have sn<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed up hundreds of smaller tech firms in recent years \u2014 and have improperly used \u201cloopholes\u201d to avoid antitrust scrutiny, according to the Federal Trade Commission.\u00a0<\/p>\n<p>Critics say that acquisitions can be used by big tech firms to shut down potential competitors, stifling innovation, hurting users and potentially creating or reinforcing monopolies. That\u2019s why the FTC and Justice Department are supposed to review larger deals.\u00a0<\/p>\n<p>But <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a>, Google, Amazon, Apple and Microsoft together made 616 acquisitions from 2010 to 2019 that were worth more than $1 million each and which did not trigger reviews by the FTC or Department of Justice, the FTC said in a study released Wednesday.<\/p>\n<p>FTC commissioner Rebecca Slaughter described smaller acquisitions as part of a \u201cPac-Man strategy\u201d through which companies can gobble up their competition.\u00a0<\/p>\n<p>\u201cEach individual merger viewed independently may not seem to have significant impact,\u201d the Democrat said. \u201cBut the collective impact of hundreds of smaller acquisitions can lead to a monopolistic behavior.\u201d<\/p>\n<p>Meanwhile, FTC chief Lina Khan \u2014 a Big Tech critic who was confirmed as chair in June \u2014 argued that the report showed that regulators need to scrutinize smaller transactions more frequently. <\/p>\n<figure class=\"wp-block-image size-large is-style-default\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-83.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"FTC Chair Lina Khan\" class=\"wp-image-19488216\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-83.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-83.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-83.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>FTC Chair Lina Khan has taken a hard line against big tech firms. <\/figcaption><figcaption><span class=\"credit\">POOL\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cThe FTC may have created loopholes that are unjustifiably enabling deals to fly under the radar,\u201d Khan said.\u00a0<\/p>\n<p>The FTC review also found that big tech companies routinely use controversial non-compete clauses, which ban workers from taking jobs at rival companies.\u00a0<\/p>\n<p>Nearly 77 percent of the transactions reviewed used \u201cnon-compete clauses for founders and key employees of the acquired entities,\u201d according to the review.\u00a0<\/p>\n<figure class=\"wp-block-image size-large is-style-default\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-60.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"The FTC\" class=\"wp-image-19488252\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-60.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-60.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-60.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Big tech companies frequently use controversial non-compete agreements, the FTC found.<\/figcaption><figcaption><span class=\"credit\">The Washington Post via Getty Im<\/span><\/figcaption><\/figure>\n<p>The Biden administration argued in a July <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.whitehouse.gov\/briefing-room\/presidential-actions\/2021\/07\/09\/executive-order-on-promoting-competition-in-the-american-economy\/\">executive order<\/a> that non-compete clauses \u201cmay unfairly limit worker mobility\u201d and encouraged the FTC to \u201ccurtail\u201d their use.\u00a0<\/p>\n<p>Khan echoed the administration\u2019s argument.<\/p>\n<p>\u201cExploring how firms in digital markets may be using acquisitions to lock-up key assets along with talent will be a worthy area of study,\u201d she said.\u00a0<\/p>\n<figure class=\"wp-block-image size-large is-style-default\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-62.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"President Biden\" class=\"wp-image-19488280\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-62.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-62.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-62.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The Biden administration has argued that non-compete agreements \u201cmay unfairly limit worker mobility\u201d and encouraged the FTC to \u201ccurtail\u201d their use.\u00a0<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>Matt Stoller, an antitrust expert and former senior adviser to the Senate Budget Committee,\u00a0said the FTC\u2019s report shows how Big Tech firms use non-competes to stifle competition.\u00a0<\/p>\n<p>\u201cThere aren\u2019t that many people that really know how to manage large amounts of data, or certain aspects of cybersecurity, or have deep knowledge of search algorithms,\u201d Stoller told The Post. \u201cIf you can lock up a significant amount of people who know that area, then you give yourself a competitive advantage.\u201d<\/p>\n<p>The FTC has also made headlines and enraged big tech firms in recent months for its probes of Amazon and Facebook.\u00a0<\/p>\n<p>Khan\u2019s FTC is reportedly reviewing Amazon\u2019s $8.45 billion acquisition of film studio MGM as part of a wide-ranging probe into the company\u2019s business practices. The agency is also investigating Facebook for monopolization and anti-competitive conduct, including over its purchase of Instagram.\u00a0<\/p>\n<p>Both Facebook and Amazon have sought to force Khan to refuse herself from the probes, arguing that her having written critically about the companies before she became FTC chair means she cannot be impartial.\u00a0<\/p>\n<figure class=\"wp-block-image size-large is-style-default\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-65.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Facebook sign\" class=\"wp-image-19488291\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-65.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-65.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-65.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The FTC is investigating Facebook for monopolization and anti-competitive conduct, including over its purchase of Instagram.\u00a0<\/figcaption><figcaption><span class=\"credit\">dpa\/picture alliance via Getty I<\/span><\/figcaption><\/figure>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2021\/09\/17\/ftc-accuses-big-tech-of-using-merger-loopholes-to-dodge-antitrust-scrutiny\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#FTC accuses Big Tech of using merger \u2018loopholes\u2019 to dodge antitrust scrutiny&#8221; Big tech companies have snapped up hundreds of smaller tech firms in recent years \u2014 and have improperly used \u201cloopholes\u201d to avoid antitrust scrutiny, according to the Federal Trade Commission.\u00a0 Critics say that acquisitions can be used by big tech firms to shut&#8230;<\/p>\n","protected":false},"author":1,"featured_media":341381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/09\/ftc-61.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[116093,2758,111048,5029,4974,74382,26293,70286,39572,33355],"class_list":["post-341380","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-9-17-21","tag-amazon","tag-antitrust-law","tag-apple","tag-facebook","tag-federal-trade-commission","tag-google","tag-microsoft","tag-monopoly","tag-silicon-valley"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/341380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=341380"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/341380\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/341381"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=341380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=341380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=341380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}