SpaceX and Tesla's potential merger may face antitrust scrutiny.
42 minutes ago
U.S. financial media outlet Semafor reported this week that Elon Musk has proposed a merger between Tesla (TSLA.O) and SpaceX (SPCX.O). A former U.S. Department of Justice (DOJ) official said the risk of antitrust issues arising is real. The official noted that antitrust regulators typically view such "vertical" mergers as pro-competitive, as they help improve supply chain efficiency. However, if the Tesla-SpaceX merger is deemed a potential "vertical exclusionary" deal, regulators may seek to block it. The official explained that an "exclusionary" scenario refers to a company leveraging its market position to restrict competitors at other levels of its supply chain. In this case, if only Tesla vehicles were allowed to use SpaceX technologies like Starlink in the future, other autonomous driving or electric vehicle manufacturers could suffer as a result.
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