The recent increase in antitrust enforcement by the Federal Trade Commission (FTC) and the Department of Justice (DOJ) has led to a noticeable decline in startup acquisitions by large companies. This trend is highlighted in a report released by the Computer & Communications Industry Association (CCIA).

From mid-2021 through 2024, there was an aggressive approach to antitrust enforcement, which resulted in fewer opportunities for smaller startups to be acquired. Many of these startups lack the option to exit through an Initial Public Offering (IPO), leading to more business closures, fewer profitable sales, and reduced returns for investors. These outcomes are unfavorable for both startup founders and venture capital investors.

Given that the United States is a leader in Artificial Intelligence (AI), with AI playing a significant role in about one-third of recent venture capital investments, stringent antitrust measures could potentially hinder future economic growth. This might weaken the U.S.'s position in global competition and affect national security.

Trevor Wagener, CCIA’s Chief Economist and Director of the Research Center, commented on this issue: “Aggressive antitrust enforcement from mid-2021 through 2024 over-deterred startup acquisitions by large companies, particularly harming smaller startups. Overly aggressive antitrust enforcement effectively removed acquirers who previously accounted for 16% of bid value from competition for acquisitions, and other potential acquirers failed to step up to replace those lost funds.”