KILLER ACQUISITIONS: HOW BIG FIRMS QUIETLY KILL STARTUP COMPETITION

Killer acquisitions occur when major companies purchase start up companies with the aim of eliminating any form of future competition and not encouraging innovation. Since competition law essentially aims at the current market impact and turnover limit, start-ups with disruptive potential are more often than not avoidable by regulation. Regulators include the Federal Trade Commission or the Competition Commission of India who find it difficult to determine the possible competition and innovation damages. Acquisitions of high profile companies by Meta and Google demonstrate an apprehension that these transactions can decrease the long-term competitive intensity even in circumstances where consumers benefit in the short term. The case brings to light a structural vacuum in the contemporary competitive law in the rapidly changing digital markets.