What to Look Out for in Tech Mergers

London corporate partner Amy Comer and Washington, D.C.-based antitrust partner Kenneth Vorrasi coauthored an article for Investment Week that outlines what investors should look out for in tech mergers.

Comer and Vorrasi highlight that antitrust is a priority for the Biden Administration and that investors should be aware that the Department of Justice (DOJ) and Federal Trade Commission (FTC) seek comment on 15 different areas of merger reviews, particularly on aspects relevant to digital markets.

Additionally, the authors note that the U.K. Competition and Markets Authority (CMA) has focused on fostering effective competition in digital markets and has identified several gaps in the assessment carried out in merger cases. They explain that investors should be aware that the U.K. is considering a new merger control regime specifically to rein in big tech firms with “strategic market status” (SMS), which could include additional complexities for SMS firms when making investments.