Google’s potential acquisition of HubSpot is expected to face resistance from US and European antitrust regulators.
Although Google has not officially bid to acquire the $35 billion online marketing software company, experts are discussing whether such a move could stifle competition.
While some argue it would not significantly limit competition, many believe such a move by Google would still draw scrutiny and opposition from antitrust regulators.
Competition concerns. After the potential acquisition was announced last week, antitrust experts weighed in on its potential impact on competition. The consensus among most is that the deal is unlikely to eliminate competition. This is due to the presence of several major players such as Microsoft, Salesforce and Adobe in the customer relationship management (CRM) software industry. In addition, they noted that Google does not currently compete in this sector.
Antitrust reaction. While the industry doesn’t expect the deal to curb competition, Seth Bloom, a former general counsel for the U.S. Senate antitrust subcommittee who now runs his own consulting firm, hopes it won’t tighten too much just yet. to antitrust regulations. he said Reuters:
“My initial reaction is that this deal would face a pretty tough reception from antitrust regulators.”
next steps If Google decides to move forward with its bid to acquire HubSpot, experts predict the search engine giant will have to defend its position in a lengthy court battle, arguing that the acquisition would not stifle competition. Similarly, HubSpot should probably make a similar case.
HubSpot advantage. If a deal with Google materializes, it could help HubSpot emerge as a stronger competitor in the CRM space. As of 2022, HubSpot has just 4.9% market share in the CRM space, according to technology researcher Gartner. In contrast, Salesforce and Adobe each have a 15% share. However, by leveraging Google’s cloud computing resources, HubSpot could improve its offerings and provide more competitive pricing for customers.
What Google says. Google did not immediately respond to Search Engine Land’s request for comment.
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