Google’s parent company Alphabet is contemplating an acquisition of HubSpot, a leading CRM software provider. However, such a deal is likely to encounter significant regulatory opposition despite experts suggesting it would not significantly stifle competition.
According to a recent report by Reuters, Google has been deliberating over a potential bid for HubSpot, which boasts a market value of $34 billion. The tech giant is carefully assessing the antitrust risks associated with the acquisition and has yet to make a final decision.
Despite concerns from antitrust regulators, nearly a dozen experts and industry analysts have indicated that Google’s acquisition of HubSpot would unlikely have a detrimental impact on competition. They argue that the customer relationship management (CRM) software sector, where HubSpot operates, is already well-served by major players such as Salesforce, Adobe, Microsoft, and Oracle. Notably, Google does not currently compete in the CRM market.
Read more: Google’s US Ad Antitrust Suit Trial Date Set For March 2024
Furthermore, experts suggest that HubSpot could become a stronger competitor in the CRM space with access to Google’s cloud-computing resources, potentially improving offerings and prices for customers. According to research by Gartner, HubSpot held a 4.9% market share in the CRM marketing software industry in 2022, while Salesforce and Adobe each commanded a 15% share.
However, despite the perceived minimal impact on competition, experts anticipate significant challenges from U.S. and European antitrust regulators if Google proceeds with the acquisition. There is a growing apprehension among regulators about allowing technology giants to expand their dominance through acquisitions.
Seth Bloom, a former general counsel of the U.S. Senate antitrust subcommittee, expressed skepticism about the deal’s prospects with regulators. He suggested that Google would need to be prepared for a protracted legal battle to justify the acquisition’s merits. Convincing HubSpot to support the deal would also be crucial in navigating regulatory hurdles.
Source: Reuters
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI