DOJ antitrust head warns dealmakers not to mislead on AI

• Assefi cautioned that the DOJ 'knows when you are trying to mislead us' and hears frequent claims that AI is disrupting merging parties' industries
• For the DOJ to take AI-related competitive arguments seriously in merger reviews, companies must provide actual evidence rather than speculative claims
• The warning comes as companies increasingly cite AI disruption and technological change as justifications for consolidation in antitrust proceedings

DOJ Antitrust Chief Warns Against Misleading AI Claims in Merger Reviews

Key Development:

The U.S. Department of Justice's acting antitrust head, Omeed Assefi, issued a stern warning on May 7 to companies attempting to use artificial intelligence disruption as an unsupported defense during merger reviews.

Main Points:

Speaking at a New York University event, Assefi, who oversees the DOJ's merger review process, emphasized that while his division welcomes engagement from merging parties at any stage, officials can detect misleading arguments. He specifically cautioned against companies claiming AI is disrupting or replacing their industries without providing substantive evidence to support such assertions.

Direct Warning:

"We know when you are trying to mislead us," Assefi stated, adding that the DOJ hears AI-related claims frequently. "For us to take it seriously, we expect it to be backed up with actual evidence," he said according to prepared remarks.

Market Implications:

This warning signals heightened scrutiny from antitrust regulators on how companies frame competitive dynamics in merger filings. Dealmakers may face tougher questions and need more robust documentation when arguing that AI-driven market changes justify consolidation or reduce competitive concerns. The statement suggests the DOJ is experiencing an uptick in AI-related arguments from companies seeking merger approvals, prompting preemptive pushback against potentially weak defenses.

Context:

The warning comes as AI becomes increasingly central to business strategy across industries, with companies potentially attempting to leverage AI narrative to minimize regulatory concerns about market concentration or anti-competitive effects of proposed mergers.