Data compiled by technology company Dealogic showed that US big tech placed more deals in 2021 over the decade. The rapid pace came despite the antitrust push of American lawmakers.
Heavyweight Microsoft Corporation announced 56 agreements last year. Its aggregate deal volume posted at $25.70 billion, a ten-year high.
In 2022, its $69.00 billion acquisition for video game maker Activision Blizzard became history’s biggest tech purchase.
However, the move poses a considerable risk for regulators to act. Then, it followed several large deals, including its $19.00 billion purchase of Nuance Communications.
Similarly, Google parent Alphabet had 22 deals, also posting a ten-year high volume of $22.00 billion.
Correspondingly, Amazon recorded 29 accords with a total volume of $15.70 billion.
Last May, the e-commerce giant bought MGM Studios, a media company, for $8.45 billion. It was Amazon’s most ambitious move towards the entertainment business.
Overall, the historic surge of merger filings suggested that US big tech companies try to get in front of an upcoming antitrust crackdown.
Experts also noted that firms assumed that regulators would not have a strong enough court case to block the purchases.
Microsoft, Amazon, Meta Platforms, Alphabet, and Apple are the most scrutinized businesses due to their broad market power.
Antitrust Push against US Big Tech Heats Up
Moreover, the antitrust push against US big tech heats up this year as senators have already started debating the bills.
Subsequently, the American Innovation and Choice Online Act hinder firms like Apple, Google, and Amazon from favoring their services over others.
This measure will prevent US big tech from leveraging power in one arena to support a specific product.
For instance, there are claims that Google favors its shopping results.
In addition, the Open App Markets Act encourages competition on app stores such as Apple Store and Google Play.
The bills came after a stern talk about merger scrutiny from new leaders at the Federal Trade Commission (FTC) and Justice Department.
The FTC relied on deterrence to keep company acquisitions in check across all industries in the past months.