Computer & Communication Industry Association

Antitrust Enforcement Over-deters Acquisitions, Squeezing Smaller Startups and Venture Capital Investors

PublishedJanuary 24, 2025
Written By
  • Susan E. Woodward

A "process is the punishment" antitrust enforcement regime from mid-2021 through 2024 over-deterred acquisitions, significantly impacting venture-backed startups and venture capital investors. This "merger tax" led to a sharp decline in acquisitions of smaller startups that can't IPO. The result: reduced exit multiples, increased shutdowns, and constrained venture capital returns. This dynamic undermines innovation, particularly in AI startups, which comprised a third of venture capital deals in 2023, and risks broader economic and security risks from impaired U.S. tech leadership.

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Research
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Economic Implications of the European Union Space Act

The study finds that the EU Space Act risks causing economy-wide effects through delayed adoption of new space-based services across the economy. The EUSA would increase manufacturing and design co...

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An Analysis of the Performance of European Venture Capital-Funded Startups

The Digital Markets Act and antitrust enforcer scrutiny eliminated European startup acquisitions by explicitly targeted U.S. companies and reduced European startup acquisitions by other large U.S. ...

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Generative AI: an Assessment of Competitive Dynamics in the Asia-Pacific Region

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    Competition
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Repealing Section 230 Would Cost Americans Over $2.2 Trillion

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  • Online Safety
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