Updated · May 20, 2022
Elon Musk’s Twitter Buy Faces Antitrust Review
Updated · May 06, 2022
Left-wing group urges the US antitrust watchdog to block the deal.
Routine FTC Review
The United States Federal Trade Commission (FTC) is reportedly investigating Elon Musk’s $44 billion acquisition of Twitter.
A person familiar with the matter told Bloomberg that the commission has set a deadline for next month to decide if it will conduct a more thorough review of the takeover.
If this happens, it could delay the acquisition by months. However, experts believe that there is little to no chance of finding evidence of antitrust issues that could snag the deal. Neither of Musk’s other companies, including Tesla and SpaceX, are social media platforms.
The FTC is already investigating Musk’s purchase of 9.2% of Twitter’s shares which saw him become the social media platform’s biggest shareholder. It is probing to verify whether he complied with antitrust reporting regulations.
Opposition From Anti-Monopoly Group
Elon Musk’s proposed takeover of Twitter is facing opposition from a left-wing group, the Open Markets Initiative (OMI), where current FTC chairperson Lina Khan previously worked.
According to Daily Mail, the organization has asked the agency to scrap the $44 billion deal as it “poses immediate and direct threats to American democracy and free speech.”
Open Markets Initiative alleges that with Starlink, Musk already has control over a major communication platform. Starlink is a satellite internet network operated by SpaceX. The group argues that also owning Twitter will grant the billionaire too much power.
In a reaction, Republican Rep Jim Jordan issued a letter condemning the group’s call and accusing the OMI of “leveraging its close relationship” with the FTC Chair.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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