SpaceX-Tesla merger could face antitrust scrutiny

BlockBeats news, October 23 - According to a report by the US financial media outlet Semafor, Elon Musk proposed this week a merger between Tesla (TSLA.O) and SpaceX (SPCX.O). A former Department of Justice official stated that the risk of triggering antitrust issues is real.

The official pointed out that antitrust regulators view such "vertical" mergers as pro-competitive because they help improve supply chain efficiency; however, if the Tesla-SpaceX deal is deemed a potential "vertical foreclosure" merger, regulators might attempt 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 SpaceX's Starlink and other technologies, other autonomous driving or electric vehicle manufacturers could be harmed as a result.