US media: SpaceX-Tesla merger could face antitrust scrutiny

Odaily reports: According to US financial media outlet Semafor, Musk proposed this week a merger between Tesla (TSLA.O) and SpaceX (SPCX.O), and a former Justice Department official said the risk of triggering antitrust issues is real. The official noted that antitrust regulators generally view such "vertical" mergers as pro-competitive because they help improve supply chain efficiency; however, if the Tesla-SpaceX deal is deemed a potentially "vertical foreclosure" merger, regulators may seek to block it. The official explained that a "foreclosure" scenario refers to a company using its position to restrict competitors at other levels of its supply chain. In this case, if in the future only Tesla vehicles can use technologies such as SpaceX's Starlink, other autonomous driving or electric vehicle manufacturers could be harmed as a result.

Of course, this depends on the terms of the transaction, which currently remains hypothetical. It also depends on how willing US antitrust enforcement agencies, which are aligned with Trump, are to clash with Musk—a major Republican donor. Even so, if Democrats retake control of the House next month, Musk will face congressional scrutiny—and lawmakers will also closely examine any attempt by him to merge his companies. (Jinshi)