Senators Amy Klobuchar (D-MN) and Mike Lee (R-UT), of the Senate Judiciary’s Subcommittee on Antitrust, Competition Policy and Consumer Rights, recently launched a bipartisan probe into potential antitrust abuses by 5 members of Big Tech (Facebook, Microsoft, Apple, Google, and Amazon). (Victoria Graham, Bloomberg Law). These companies have exhibited a penchant for buying startup companies whose technology could potentially compete against their own or using “platform privilege” to crush competitors who refuse to be bought. This article identifies examples of the anti-competitive behavior in question, discusses the current legislative efforts being pursued to regulate Big Tech and explores economic arguments that support stronger regulation.

Facebook’s newest startup acquisition, CTRL-Labs, hopes its technology will allow users to control augmented reality (“AR”) technology with nothing more than a thought. (Kurt Wagner, Bloomberg Law). The startup, CTRL-Labs (pronounced “Control”), is developing a non-invasive neural interface that would convert user’s electrical muscle impulses into digital signals. (Polina Marinova, Fortune). This would allow users to move a mouse, or video game character, without having to move a muscle. Although the financial details of the acquisition are being kept private, according to people familiar with the deal, Facebook offered between $500 million and $1 billion for the startup. (Kurt Wagner, Bloomberg Law). The acquisition of CTRL-Labs comes at a time when technology companies, especially Facebook, are facing a bipartisan political attack on anti-competitive behavior within the industry. (David McLaughlin et al., Fortune). This post will also briefly address Facebook’s entry into and aspirations of the AR hardware market, and recent governmental oversight concerning Facebook's history of absorbing potential competitors.

Elon Musk, the eccentric billionaire and aspirant Tony Stark, could find himself back in court after Tesla shareholders have asked the Ninth Circuit Court of Appeals to reinstate their claims against him. (Peter Hayes, Bloomberg Law).  The shareholders allege that Mr. Musk personally profited off of a short-swing trade involving Tesla’s acquisition of SolarCity. Id.  In July, a federal trial court had dismissed the shareholder’s lawsuit on the grounds that Musk could not be sued under federal securities laws for his actions. Id. The shareholders subsequently filed an appeal the following month. Id. This post will examine Tesla’s acquisition of SolarCity, the role that Elon Musk holds in each company and what the shareholder lawsuit is challenging. 

BlackRock, Inc. (“BlackRock”), the world’s largest asset manager, has called for its portfolio companies to increase their gender diversity on director boards. (Vanessa Fuhrmans, The Wall Street Journal). In a set of proxy voting guidelines posted in February of last year, the global investment company stated that they would “normally expect to see at least two women directors on every board.” Id.Blackstone’s public call-to-arms represents a significant shift in investment firms that, in the past, have only privately urged corporations to expand the role of women on boards of directors. While companies in the U.S. have been slow to respond, many European nations have introduced legislation that mandates gender diversity on corporate boards. This post will highlight Blackrock’s commitment to gender diversity, the emergence of EU legislation establishing gender quotas for director boards and scientific studies that support the increase of women on companies’ director boards. 

The Blackstone Group (“Blackstone”), a New York-based financial services firm, announced on March 15, 2019, that it had signed a definitive agreement to purchase Japanese drug maker AYUMI Pharmaceutical Corporation (“AYUMI”). (Lisa Du, Bloomberg Law). This deal marks Blackstone’s first investment in a growing Japanese private equity market. (Matt Anderson et al., Blackstone). AYUMI produces drugs for rheumatic and orthopedic disorders and is valued at around $1 billion. The company is currently owned by Japanese private equity firms Unison Capital Inc. (“Unison”) and M3 Inc. (“M3”). (Lisa Du, Bloomberg Law).