EU antitrust watchdogs to have more say over tech, pharma, biotech start-up deals

By Foo Yun Chee BRUSSELS (Reuters) - EU antitrust regulators are set to have more say over small merger deals involving start-ups in the technology, biotechnology and pharmaceutical industries, the EU enforcer said on Friday, in a warning to big companies eyeing such deals.

Reuters March 27, 2021 00:06:17 IST
EU antitrust watchdogs to have more say over tech, pharma, biotech start-up deals

EU antitrust watchdogs to have more say over tech pharma biotech startup deals

By Foo Yun Chee

BRUSSELS (Reuters) - EU antitrust regulators are set to have more say over small merger deals involving start-ups in the technology, biotechnology and pharmaceutical industries, the EU enforcer said on Friday, in a warning to big companies eyeing such deals.

The move comes amid regulatory concerns on both sides of the Atlantic that a buying spree of start-ups by big companies, which do not trigger competition scrutiny because of the low value of the deal, may be so-called killer acquisitions.

This refers to a company buying a potential rival still in a nascent stage with the aim of shutting it down.

Critics have often cited the hundreds of small companies acquired by Alphabet's Google and Facebook in recent years while supporters say such deals provide the money and resources to help start-ups to grow.

The European Commission said it wants national competition watchdogs to refer more small deals to the EU enforcer.

"A more frequent use of the existing tool of referrals under Article 22 of the Merger Regulation can help us capture concentrations which may have a significant impact on competition in the internal market," European Competition Commissioner Margrethe Vestager said in a statement.

The Commission cited recent deals in the digital, pharmaceutical, biotechnology and certain industrial sectors which had escaped regulatory scrutiny.

(Reporting by Foo Yun Chee. Editing by Jane Merriman)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Amazon union vote enters final stretch in watershed moment for U.S. labour
Business

Amazon union vote enters final stretch in watershed moment for U.S. labour

By Mike Spector and Jeffrey Dastin (Reuters) - The National Labor Relations Board has begun reviewing ballots from Amazon.com Inc's workers in Alabama, who have voted on whether to form a union, with momentum for future labour organizing at America's second-largest private employer hanging in the balance. Agents from the labour board began sifting through ballots sent to more than 5,800 workers at Amazon's Bessemer, Alabama-based warehouse at 10 a.m

Spotify buys Locker Room app's maker Betty Labs in live audio push
News & Analysis

Spotify buys Locker Room app's maker Betty Labs in live audio push

By Elizabeth Culliford NEW YORK (Reuters) - Spotify Inc said on Tuesday it has purchased Betty Labs, the company behind sports-focused social audio app Locker Room, to accelerate its move into live audio. New voice-based platforms, including invite-only social app Clubhouse, have seen rapid growth in recent months during the COVID-19 pandemic.

Oil falls as Suez Canal opens, dollar rallies; eyes on OPEC+ meeting
Business

Oil falls as Suez Canal opens, dollar rallies; eyes on OPEC+ meeting

By Devika Krishna Kumar NEW YORK (Reuters) - Oil prices slid on Tuesday as the Suez Canal reopened to traffic and the dollar rallied, while focus turned to an OPEC+ meeting this week, where analysts expect an extension to supply curbs to offset dim demand prospects. Brent crude fell $1.20, or 1.9%, at $63.78 a barrel by 1:12 p.m.