EU Out of Charge

Today's memo:

• 💡 Macron plans ahead
• 📈 Tech probes continue
• 📉 Europe EV Batteries in trouble
• ⚖️ Travers news, Mishcon leads on biotech deal

💡 Must-Know

• 🇫🇷 Macron's Challenge: French President Emmanuel Macron is building a moderate coalition to counter Marine Le Pen’s influence until 2027. A new PM appointment is imminent, as political uncertainty shakes business confidence.
• 🇺🇸 US Deals Under Fire: President Biden plans to block Nippon Steel’s $14.1 billion US Steel bid over security concerns while an Oregon judge blocked Kroger’s $25bn merger with Albertsons, citing competition concerns raised by the FTC.
• 💊 Boots Takeover Talks: US owner Walgreens is in discussions with private equity giant Sycamore Partners over selling Boots, the UK high street chemist. The deal could value Boots at $10bn (£7.8bn) and may spark a new auction.
• 🇨🇳 Under investigation: China launched an investigation into Nvidia for suspected breaches of its anti-monopoly law and unfulfilled commitments from a 2020 acquisition deal. This move is widely seen as a retaliation against recent US restrictions on Chinese tech firms.
• 🚗 GM's Robotaxi U-turn: General Motors is halting its costly robotaxi venture, shifting Cruise’s focus to assisting human drivers. Fierce competition and high scaling costs drove the move. GM is also slowing electric vehicle production as demand drops in the US.

📈 Opportunities

More Tech Probes

European regulators are scrutinising a secret advertising deal between Google and Meta that allegedly bypassed Google's own rules on targeting minors. The inquiry could lead to a formal investigation into Google’s practices.

What does this mean?

It’s not a great look for Google. The ad campaigns, run on YouTube to promote Instagram, reportedly sidestepped Google's policy banning personalised ads for teens. Internal chats revealed that Google staff helped Meta exploit a loophole by targeting a group classified as “unknown,” which skewed toward under-18s.

The campaign, first tested in Canada by Meta’s ad partner Spark Foundry, proved so successful it was rolled out to the US—until an exposé in the Financial Times prompted its abrupt cancellation. Now, the EU is demanding documents from Google, which has scrambled to enforce stricter rules and train staff on safeguarding minors.

This is part of a larger crackdown on Big Tech. Meta’s CEO faced Congress over child safety issues, while Google battles antitrust lawsuits that could force it to sell off parts of its business. Despite the friction, the two tech giants continue to collaborate on major ad campaigns. But if regulators turn up the heat, Google and Meta might find their cozy partnership under serious threat.

What does this mean for Law Firms?