Washington, D.C. – TechNet, the national, bipartisan network of innovation economy CEOs and senior executives, released the following statement today after Senators Amy Klobuchar (D-MN) and Tom Cotton (R-AR) introduced a new bill targeting mergers and acquisitions. The following statement can be attributed to TechNet President and CEO Linda Moore:
“The United States is the land of opportunity, where anyone with an idea can bring it to market. To succeed, businesses of all sizes must innovate every day or risk falling behind. This mindset is shared by our nation’s most successful companies. However, this bill would punish that mentality, have a chilling effect on our economy, and benefit our foreign competitors.
“A strong startup economy is key to our nation’s future, with entrepreneurism thriving in communities across the country. But young companies need the right conditions to succeed. By making it harder for startups to be acquired by U.S. companies, our economy will be weakened and our foreign adversaries strengthened amid an increasingly competitive global race for leadership.”
“The legislation will also have unintended consequences that threaten America’s entrepreneurial spirit, with startups being most impacted. These businesses welcome being acquired but, by prohibiting who can acquire them, their exit opportunities will become limited. Instead of merging with an American company, the life-changing ideas and innovations startups launch, and the jobs they create, will likely be acquired by companies outside the U.S., including by our adversaries abroad, to whom the law does apply. This means foreign competitors would hold a distinct advantage over American companies here in the U.S., triggering devastating effects for our economy, competitiveness, and national security.
“Government agencies have proven over decades they can protect competition. Of the approximately 780 mergers contested over the past 20 years, the government has won all but 11. Congress should invest more resources in these agencies to ensure they can challenge any merger or acquisition that lessens competition and harms consumers. Rather than pushing investment outside the U.S. and boosting countries like China, Congress should work to improve our current system, not try to tear it down.”