Merger Control And AI Start‐Ups: Adequacy Of Existing Thresholds
- IJLLR Journal
- Jun 10
- 1 min read
Sandhiya S, LLM (Corporate Law), SRM School of Law, SRM Institute of Science and Technology, Kattankulathur
ABSTRACT
This research investigates whether the current merger notification thresholds and provisions are sufficient to effectively target the impact of the competitive dynamics of the artificial intelligence (AI) sector, specifically so-called “killer acquisitions” of developing AI startups by established technology companies. The research will focus on the legislative reform under the Competition (Amendment) Act, 2023 and the notified Combination Regulations and notifications (including the Deal-Value Thresholds framework), the jurisprudence and best practice in the main jurisdictions (EU, US), and the literature on “killer acquisitions,” market tipping, and developing competitor theories of harm. This research will integrate a doctrinal analysis of the law, an assessment of the policy, and a small-scale empirical analysis of high-profile AI-related acquisitions to assess whether the current thresholds (asset/turnover and DVT) are sufficient to effectively target acquisitions that may foreclose future innovation or concentration in the AI layer. The final section of the paper will offer recommendations on threshold design, information collection, and remedial policies that the competition authority might pursue to reconcile the innovation gains from acquisitions with competition protection.
