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>They have no authority to review a minority investment. That's just wrong. Partial acquisitions and minority shareholdings don't allow you to bypass antitrust
by sigmoid10 1y ago
>They have no authority to review a minority investment.
That's just wrong. Partial acquisitions and minority shareholdings don't allow you to bypass antitrust investigations.
See 15 U.S.C. §18 for example. It is similar in the EU.
- linotype 1y agoThe current US administration allows you to bypass US antitrust regulations.
- sigmoid10 1y agoBut not because of majority/minority reasons as the other comment implies. It would be utterly ridiculous if you could just buy 49% of each of your competitors without any possibility for the government to interfere.
- andrewparker 1y agoYou are literally correct, but not engaging in the point. Meta shares in Scale are explicitly non-voting shares. Influence/control post minority investment matters as to whether the deal can be reviewed via Clayton Act. Meta did everything they could to avoid regulatory review with this transaction, and it worked.
- sigmoid10 1y agoThe point remains wrong even if you pivot to this argument. Every major competitor has cancelled their deals with Scale AI and there are even rumours that the company will wind down and perhaps eventually stop working while key workers are essentially being absorbed into Meta. This is textbook anti-competitive behaviour and more than enough reason to warrant antitrust investigations by oversight agencies in the major markets.