Amazon Partners with Adept Last Month
Suspected Strategic Acquisition to Avoid Antitrust Investigation
U.S. antitrust authorities are reportedly set to scrutinize the partnership between the world's largest e-commerce company Amazon and AI startup Adept.
On the 16th (local time), CNBC cited sources familiar with the matter, reporting that the Federal Trade Commission (FTC) launched an informal investigation last month into Amazon's acquisition of Adept's CEO, employees, and technology licenses.
Following the announcement of the partnership between Amazon and Adept, political circles criticized it as a possible 'sham acquisition' by Amazon to avoid antitrust scrutiny. Three senators, including Ron Wyden, Chairman of the Senate Finance Committee, sent a letter earlier this month to the U.S. Department of Justice and the FTC urging an investigation into the deal.
The FTC is also reportedly investigating Microsoft's deal with Inflection. In March, Microsoft hired Mustafa Suleyman, co-founder of AI company DeepMind and Inflection, as the head of its AI business. These deals are also under antitrust review by the UK's Competition and Markets Authority (CMA).
As major antitrust regulators have recently tightened scrutiny over big tech mergers and acquisitions (M&A), big tech companies have been forming partnerships with startups through investments or by acquiring technology and talent. Key antitrust authorities appear to be examining whether these partnerships are effectively de facto acquisitions designed to circumvent antitrust investigations.
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