Elon Musk’s $44 billion Twitter acquisition is allegedly being investigated by the US Federal Trade Commission (FTC) for possible antitrust violations. Musk must inform the FTC and the Justice Department of the purchase and wait at least 30 days before closing to allow for an examination into any antitrust problems, according to US merger legislation. The FTC can issue a second request for further information, which would cause the case to be delayed even more.
The acquisition is unlikely to create antitrust problems, according to antitrust experts. According to Bloomberg, the FTC now has 30 days to review the offer and determine whether to make a second request to investigate the subject further. However, most analysts believe there are no antitrust concerns that may prevent the merger.
Open Markets, the antitrust non-profit has asked the commission to reject the transaction, claiming that it will give Musk too much power over free speech platforms. Musk’s ownership of the Starlink satellite internet service, the organization contended, already gives him control over a major communication platform, and that buying Twitter would be a dangerous concentration of power.
The Federal Trade Commission is also looking into whether Musk should have informed the agencies when he bought a 9% interest in Tesla in March. If the FTC determines that a notice failure was unintentional, it usually takes no action. If the failure is egregious or occurs frequently, the agency can pursue fines of up to $43,792 per day. The Tesla CEO failed to submit papers with the FTC in order to allegedly take advantage of a law that exempts voting securities purchased simply for investment purposes from being subject to the legislation.
On a separate note, Microsoft CEO Bill Gates also voiced his concerns about Musk taking over Twitter. He commented it is unknown how Musk would modify Twitter if he takes control, speaking at the Wall Street Journal’s CEO Summit on Wednesday. He also highlighted worries about the proliferation of disinformation on social media platforms. Gates, who has recently been surpassed by Musk as the world’s richest person, went on to query what Musk’s purpose with Twitter is and whether his push to encourage free expression is reasonable.
