Google targeted by EU over its search advertising auction practices | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]A Google logo is seen at a company research facility in Mountain View, California, U.S., May 13, 2025. REUTERS/Carlos Barria/File Photo [Purchase Licensing Rights, opens new tab]- Companies[Alphabet Inc]FollowBRUSSELS, Feb 12 (Reuters) - EU antitrust regulators are investigating Alphabet [(GOOGL.O), opens new tab] uni ...

Intel Corp (NASDAQ:INTC) stock is trending on Thursday. India’s antitrust regulator imposed a penalty on the chipmaker for implementing a discriminatory warranty policy on its boxed microprocessors in the country.Regulatory ActionThe Competition Commission of India (CCI) on Thursday imposed a penalty of INR 27.38 crores (approximately $3.3 million) on Intel Corporation for violating provisions of Section 4 of the Competition Act, 2002.The case originated from information filed by Matrix Info Systems Private ...

Core Viewpoint - Germany's cartel office has prohibited Amazon from imposing price caps on online retailers in its German marketplace, marking a significant regulatory action against the company [1] Group 1: Regulatory Actions - The German cartel office's decision represents a first-time claim against Amazon, stating that the company obtained several million euros through its pricing practices [1]

“My understanding is that [the FTC] really wants to make it more of a level position between standard acquisitions and the so-called [reverse-]acquihires,” says Igor Letina, associate professor at the University of Bern, Switzerland, speaking in an academic capacity. (Letina is also a vice president of the Swiss Competition Commission.) “What they’re signaling is that they will examine both types of deals in the same way according to the same standard, and make sure that they are compliant with antitrust la ...

Core Viewpoint - Paramount Skydance CEO David Ellison is extending the January 21 deadline for shareholders of Warner Bros. Discovery (WBD) to accept his $30-a-share hostile offer, without increasing the offer price [1][4][11] Group 1: Offer and Negotiations - Ellison's team plans to extend the tender deadline to convince shareholders to reject Netflix's $72 billion all-cash offer [5][6] - WBD CEO David Zaslav is pushing for an earlier shareholder vote on the Netflix deal, moving it to February from May [2][4] - Ellison and his partners are considering increasing their offer to as high as $33 a share, potentially raising the total deal cost to around $80 billion [7] Group 2: Legal and Regulatory Aspects - Paramount Skydance is pursuing a lawsuit to demonstrate that Zaslav conducted an unfair bidding process favoring Netflix due to his friendship with Netflix CEO Ted Sarandos [5][9] - Ellison and Cardinale are meeting with European and UK regulators, who appear more amenable to approving their deal compared to Netflix's proposal [12] - There are concerns regarding Netflix's regulatory hurdles due to its potential market control after merging with WBD's HBO Max [12][16] Group 3: Market Context - Netflix has lost approximately $170 billion in stock market value since summer, raising questions about its spending on assets not central to its business model [8] - Wall Street bankers believe that Paramount Skydance has at least one more bid left before potentially withdrawing from the negotiations [15]

Group 1 - The European Union antitrust regulators are set to make a decision by February 10 regarding Alphabet's $32 billion acquisition of cybersecurity company Wiz, which represents Alphabet's largest deal to date [1]

Core Insights - Apple will permit other app stores on its iOS operating system in Brazil as part of a settlement with the country's antitrust regulator CADE, concluding a three-year legal dispute [1] Group 1 - The decision allows for increased competition in the app distribution market within Brazil [1] - This move is seen as a significant shift in Apple's policy regarding app store exclusivity [1] - The settlement reflects ongoing regulatory pressures faced by major tech companies globally [1]

Group 1 - The use of temporary staffing, particularly temporary nurses, remains elevated in hospitals five years post-coronavirus pandemic due to attrition and burnout in the sector [3] - Aya Healthcare and Cross Country Healthcare, two major U.S. healthcare staffing companies, announced a $615 million acquisition that was intended to close in the first half of 2025 [4] - The Federal Trade Commission (FTC) identified significant competitive concerns regarding the acquisition, leading to its abandonment after prolonged review [7] Group 2 - The merger's waiting period was extended multiple times due to compliance with antitrust law and requests for additional information from the FTC [5][6] - The 43-day government shutdown starting October 1 delayed the FTC's review process, ultimately exceeding the merger's new termination date [6] - The acquisition was expected to enhance Aya's technology services into non-clinical settings and strengthen both companies' positions in the healthcare staffing market [7]

Core Viewpoint - The Hollywood Teamsters oppose Netflix's $83 billion acquisition of Warner Brothers Discovery, urging antitrust regulators to block the merger due to concerns over job losses, increased consumer prices, and negative impacts on the U.S. entertainment industry [1][2]. Group 1: Industry Reactions - The Teamsters argue that the consolidation of Netflix's streaming power would threaten the livelihoods of entertainment workers and that competition has historically benefited industry growth [2]. - A group of Hollywood producers has sent an anonymous letter to Congress warning of a potential economic meltdown in Hollywood if the merger proceeds [6]. Group 2: Netflix's Position - Netflix co-CEO Ted Sarandos defended the acquisition, stating it is a rare opportunity that aligns with the company's mission to entertain the world and bring people together through storytelling [3][4]. - Despite the acquisition announcement, Netflix's stock fell over 1%, indicating investor skepticism about the deal [5]. Group 3: Market Dynamics - Streaming accounts for nearly 50% of TV consumption, with Netflix holding an 8% market share, while competitors like YouTube have a larger presence [5][19]. - The potential merger raises questions about market definition and regulatory scrutiny, as both Democratic and Republican figures have expressed concerns about the deal [13][14]. Group 4: Financial Considerations - Analysts suggest that Netflix's offer for Warner Brothers Discovery may be on the higher side for a studio but lower for a streaming service, with a valuation of approximately 14 times year three cash flow [11]. - The deal's success may depend on how regulators define the market, which could influence the outcome of antitrust reviews [16][18]. Group 5: Investor Sentiment - Investors are questioning the necessity of the acquisition, given Netflix's strong revenue growth projections and cash flow potential without the merger [21]. - The stock could benefit regardless of the merger outcome, as a rejection might lead to a rally in Netflix's shares [23].

Core Viewpoint - The bidding process for Warner Brothers Discovery is ongoing, with multiple companies including Paramount, Netflix, and Comcast participating in the initial rounds of bids. Paramount is currently seen as having a strong position due to lower regulatory risks compared to the other bidders [1][7]. Bidding Details - Paramount's previous bid was approximately $23.50 per share, consisting of 80% cash and 20% stock, with indications that they may have improved their offer [2][3]. - The composition of Netflix's bid remains unclear, but it is described as "real," indicating serious interest despite potential regulatory complexities [4][3]. Regulatory Considerations - Both Netflix and Comcast may face significant antitrust scrutiny if they proceed with their bids, particularly due to the potential merger of major studios [5][7]. - Paramount is viewed as having less regulatory risk since it is the only bidder for the entire Warner Brothers Discovery company, unlike Netflix and Comcast, which would leave behind parts of the business [7]. Financial Implications - Comcast is exploring options to restructure its debt and may consider spinning off NBC Universal and its theme parks as part of the bidding strategy [9][10]. - The market perception of Warner Brothers Discovery's stock is currently low, trading at five times earnings, which suggests that earnings expectations are not being met [11][12]. Future Outlook - The bidding process is still in its early stages, and further developments are expected as companies refine their offers and address regulatory concerns [13][14].