The year 2023 marked significant antitrust battles resulting from the Federal Trade Commission’s increased scrutiny under the leadership of Chair Lina Khan. Several transformative corporate deals drew the attention of regulators, causing concern among companies attempting to merge or acquire others. The regulatory landscape was marked by slow progress, abandoned deals, and a fair share of litigation, with some companies emerging victorious and others falling short of their goals.
Prominent among these business transactions was Adobe Inc.’s $20 billion proposed acquisition of Figma Inc., a collaborative design platform. However, this proposed purchase came to an unexpected halt, with the companies finding “no clear path” towards antitrust approvals in Europe and the UK. Their concerns were well-founded, considering the FTC’s reputation for aggressively scrutinizing big tech acquisitions in the US. The transaction’s termination saw Adobe agreeing to a hefty $1 billion fee while Figma chose to continue independently.
Moving on, another big tech company, Microsoft Corp., had to negotiate its way with the FTC for almost two years for its proposed acquisition of Activision Blizzard Inc., a prominent video game developer. Despite the FTC’s objections about potential competitive threats to its Xbox consoles and cloud-gaming offerings, the deal eventually closed after the companies allayed fears from UK and European regulators. However, this transaction marked a significant defeat for the FTC, which failed to convince courts at both district and appeal levels to halt the completion of the deal.
The completion of Amgen Inc.’s $27.8 billion acquisition of Horizon Therapeutics Plc., was another major event in 2023, concluding on a more positive note for the FTC. The agency’s lawsuit arguing that the deal would stifle pharmaceutical competition led to an FTC-approved settlement, allowing Amgen to proceed with the acquisition under specified conditions.
In contrast, the FTC suffered a significant setback when it failed to prevent Meta Platforms from purchasing the virtual reality company Within Unlimited. The commission’s argument that the deal would reduce competition within the evolving virtual reality market was dismissed by a district judge in California who found a lack of evidence supporting the FTC’s position.
Looking back at these cases, 2023 was undoubtedly a year of increased vigilance from regulators, yet some companies managed to navigate through this stringent environment, creating new precedents for future deals undergoing antitrust scrutiny. These case studies make it quite clear that antitrust battles will continue to shape the business landscape in the foreseeable future, especially within industries undergoing rapid technological advancements.
For a more detailed analysis, check out the full report on Bloomberg Law.