Bazaarvoice Shows Courts’ and Agencies’ Orthodox Approach to Mergers in High-Tech Markets

On January 12, 2014, the District Court for the Northern District of California found that Bazaarvoice’s June 12, 2012 acquisition of PowerReviews violated Section 7 of the Clayton Act, which prohibits any merger that may substantially lessen competition. The decision demonstrates that agencies and courts will continue to apply traditional methods of merger analysis based on market definition and market concentration even when customers have not opposed the transaction and the overlapping revenues involved appear to be small. The Court rejected claims that Google, Amazon, Facebook and other e-Commerce giants were competitive constraints and placed particular weight on the parties’ internal documents, once again showing how difficult it can be for merging parties to impeach their own unhelpful documents.

Click here for an S&S client memorandum analyzing the case.

 

Resources:
United States v. Bazaarvoice, Inc., Memorandum Op., No. 13-cv-00133 (N.D. Cal. Jan. 8, 2014)

Categories: US Mergers

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