Published on
February 11, 2026
FTC Investigates Big Tech Recruitment Practices to Bypass Mergers
FTC is scrutinizing Big Tech 'acqui-hire' deals that hire startup staff to sidestep antitrust review.
The U.S. Federal Trade Commission (FTC) has turned its attention to a growing trend in the technology industry, where major firms acquire startup talent and technology without purchasing the companies outright. This practice, often referred to as "acqui-hiring", is being examined as a potential method for bypassing antitrust scrutiny, according to FTC Chairman Andrew Ferguson.
"We are beginning to examine these acqui-hires to make sure they are not an attempt to get around" the agency’s merger review process, Ferguson stated in an interview with Bloomberg Television.
Increasing Regulatory Scrutiny
This type of transaction enables tech giants to integrate startup innovations and expertise while avoiding the regulatory hurdles that usually accompany formal acquisitions. The FTC’s investigation reflects heightened concerns that such deals could undermine competition in the market, a priority under the Biden administration’s aggressive antitrust enforcement initiatives.
Recent examples of this approach include Nvidia’s deal with Groq, a chip technology startup. As part of the agreement, Nvidia licensed Groq’s technology and brought on board its CEO, Jonathan Ross, a former veteran of Alphabet’s Google. Similarly, Microsoft secured its leading AI executive through a $650 million deal with a startup under the guise of a licensing agreement.
Meta and Amazon have also drawn attention for engaging in comparable transactions. Meta reportedly spent $15 billion to hire the CEO of Scale AI without acquiring the company, while Amazon hired founders from Adept AI. These deals have sparked regulatory interest, though no transactions have been reversed at this time.
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Political and Legal Dimensions
Ferguson noted that "the Biden administration’s aggressive antitrust enforcement" has likely contributed to the rise of these practices, as companies look for alternative ways to secure talent and technology without triggering merger reviews.
The political backdrop has also influenced the agency’s operations. Last year, U.S. President Donald Trump removed two Democratic FTC commissioners, a move that has led to a U.S. Supreme Court case potentially redefining presidential authority over agencies originally designed to operate with a degree of independence from political influence.
Looking Ahead
While the FTC’s scrutiny has not yet resulted in unwinding any of these deals, the investigation signals the agency’s commitment to enforcing antitrust laws in the face of evolving corporate strategies. As regulators continue to monitor acqui-hiring, the outcome could shape the boundaries of tech firms’ recruitment and acquisition strategies in the future.
