In high-technology mergers, the Justice Department now views...
In high-technology mergers, the Justice Department now views protecting “innovation” as a key consideration, Deputy Assistant Attorney General Renata Hesse said in remarks to the Conference on Competition and IP Policy in High-Technology Industries at Stanford University. “While competitive prices…
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are -- and will remain -- a key objective, the division fully appreciates the importance of innovation,” Hesse said, according to prepared remarks (http://1.usa.gov/1aN1vIf). “Innovation can dramatically improve consumer welfare by motivating the introduction of extraordinary new products, including some that meet demands that consumers didn’t even anticipate.” Hesse said DOJ looks closely at “evidence that shows that a firm being acquired has been a particularly innovative or disruptive competitor,” in considering a merger. Hesse cited DOJ’s 2011 decision to block AT&T’s purchase of T-Mobile. DOJ said at the time: “AT&T’s acquisition of T-Mobile would eliminate a company that has been a disruptive force through low pricing and innovation."