ODesk/Elance Merger: Navigating Antitrust Regulatory Challenges

As the tech industry continues to evolve, mergers and acquisitions are becoming a common occurrence. The planned merger of ODesk and Elance in the first quarter of 2014 is no exception. However, one question remains: will this merger surpass the antitrust regulatory hurdles set by the authorities?

Understanding the Background

As of the time the merger was announced, ODesk and Elance were both leading platforms for freelance professionals seeking work. The consolidation of these two major players in the freelance market has raised eyebrows, particularly among freelance professionals themselves. Many freelancers expressed concerns about the potential lack of competition following the merger. Critics argue that it could lead to a freelance monopoly, limiting options and possibly driving up prices for both freelancers and clients.

The Antitrust Concerns

Antitrust laws exist to ensure that merger and acquisitions do not unfairly limit competition, especially in industries where there are already significant players. Freelancing, being a rapidly growing sector, faces the same scrutiny as any other industry. If the merged entity were to significantly reduce competition, the antitrust regulatory bodies could face intense pressure to scrutinize the deal more closely.

Current Regulatory Climate

Given the current market conditions and the political climate, it is plausible that a merger with few antitrust hurdles might prove challenging. Over the past four decades, there has been a strong emphasis on a pro-business and anti-regulatory sentiment in the United States. This has often led to less stringent antitrust enforcement by the Justice Department. While this environment may seem favorable for the merger to go through, it does not guarantee a smooth passage.

The Potential Role of Freelancers

The fate of the ODesk/Elance merger is not solely in the hands of regulatory bodies. Freelancers and other stakeholders play a critical role in shaping the outcome. If a significant number of freelancers choose to write letters to the Justice Department's antitrust division expressing their concerns, it could prompt a more thorough review of the merger. Such public pressure can often result in an extensive investigation, even if the merger is ultimately still allowed to proceed.

Conclusion

While the merger of ODesk and Elance is likely to face fewer antitrust hurdles given the current regulatory climate, the ultimate decision will depend on both the actions of regulatory bodies and the level of opposition from key stakeholders, particularly freelancers. As the tech industry continues to consolidate, it is crucial for all parties involved to remain vigilant and prepared to navigate these challenges.