When it comes to common business transactions, both acquisitions and mergers hold a lot of commonalities. There are many reasons to purchase another company, including scaling internationally and diversifying the products offered.
However, not every approach to strong corporate growth is rooted in perfectly legal practice. It is important to always work within the law, even if the financial growth you could get outside of it may seem tempting.
Allegations against Facebook
Recently, news broke about the possibility of Facebook acquiring other companies in an unlawful manner. Their acquisition of Instagram and WhatsApp faced two lawsuits by 48 attorneys general and the United States Federal Trade Commission, both of whom point out potential illegal and suspicious practices.
Reports have suggested that Facebook engages in activities such a prioritizing their profits over the rights of the consumers, misusing digital data and leveraging their financial backing and data to unfairly quash competition.
The importance of fair competition
Generally speaking, fair competition is one of the most important components of free enterprise. The incentive of anti-trust objectives attempts to uphold quality while regulating prices and keeping efficiency high. However, the wiggle room in this sort of law allows for the possibility of court intervention.
When you are dealing with a business acquisition and merger, you will likely face a lot of legal gray areas. It is easy to get lost in the details of the law, here. This is why it is important to have a strong legal team that can provide guidance, and that knows the law inside and out. They can help prevent business owners from crossing any legal lines – and defend any allegations of wrongdoing.