Unraveling the Web: Big Tech Directors, SPACs, and Antitrust Evasion Tactics
Year: 2024
Type: article
Abstract: In recent years, Big Tech’s investment in startups has come under intense scrutiny, with concerns about market concentration and anticompetitive behavior. This Article explores how Big Tech companies, like Google, exploit Special Purpose Acquisition Companies (SPACs) to evade antitrust laws and gain monopolistic control over startups. Through data analysis and theoretical insights, this Article uncovers conflicts of interest in SPAC transactions and highlights the disconnect between shareholder approval and company performance. Comparing SPAC mergers to traditional initial public offerings (IPOs) reveals regulatory loopholes that contribute to market concentration and collusion. We argue that the dynamic tech landscape requires regulatory action to maintain fair competition and innovation. By tackling SPAC-related complexities, regulators can curb Big Tech dominance and foster a level playing field for startups and competitors. Therefore, we recommend that regulators address interlocking directorates in SPACs. Proposed solutions include limiting directors’ multiple board memberships and enforcing stricter disclosure requirements.
Source: eYLS (Yale Law School)
DOI: 10.58112/jbl.26-3.1
Authors: Alon-Beck, Anat, Livingstone, John, Ofir, Moran, Schartz-Ziv, Miriam
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6955380889
FWCI:
Cites:
Cited by:
Related to: