Introduction
ServiceNow Inc is under scrutiny by the US Department of Justice (DOJ) due to its proposed acquisition of Moveworks Inc, an AI startup. This investigation highlights concerns about potential antitrust issues, focusing on market competition, innovation [1] [2] [3] [4], and consumer choice within the AI sector.
Description
ServiceNow Inc is currently facing an antitrust investigation by the US Department of Justice (DOJ) regarding its planned $2.85 billion acquisition of Moveworks Inc, an enterprise AI startup [2] [4], which was announced in March 2025. The investigation [1] [2] [3], initiated in June 2025 [1] [3], raises significant concerns about potential reductions in competition within the AI market [1] [4], particularly focusing on issues of market concentration [1], innovation suppression [1], and consumer choice [1] [4]. As part of the review process, both companies have received a “second request” for additional information [2], which may delay regulatory approval [3].
The primary concern is whether the merger could significantly lessen competition [4], given that both companies hold prominent positions in their respective sectors—ServiceNow as a leader in IT service management and digital workflows [4], and Moveworks specializing in AI-driven employee support solutions [4]. The integration of Moveworks’ advanced large language models and conversational AI into ServiceNow’s workflow automation suite is anticipated to enhance the company’s generative AI capabilities and improve user experience across enterprise functions. However, the merger raises questions about its potential to create a dominant entity in automating internal operations, which could stifle innovation and limit consumer choices.
This heightened scrutiny reflects a broader trend of increased regulatory oversight on technology mergers [4], particularly in the AI sector [4], as governments become more vigilant in assessing deals that could consolidate power in emerging technologies [4]. The current regulatory environment emphasizes the need for competitive and accessible AI development and deployment [4], preventing a few dominant players from monopolizing the field [4].
If the DOJ determines that the merger could harm competition [3], it may block the transaction through litigation [3]. Both companies must respond to the DOJ’s request before the acquisition can proceed [3], with expectations for the deal to close in the second half of 2025 [2]. The outcome of this review will serve as a significant indicator of how regulatory bodies balance competition and innovation in the tech industry [4], highlighting the importance for companies to assess antitrust risks and prepare for rigorous regulatory scrutiny in their acquisition strategies [4]. This case is expected to set a significant precedent for future mergers in the tech sector [1], reflecting the ongoing emphasis on antitrust compliance for technology companies and its potential influence on merger strategies within the AI industry.
Conclusion
The DOJ’s investigation into ServiceNow’s acquisition of Moveworks underscores the increasing regulatory focus on maintaining competitive markets in the tech industry, particularly in AI [4]. The outcome of this case could significantly influence future mergers and acquisitions, setting a precedent for how antitrust laws are applied to emerging technologies. Companies must remain vigilant in assessing antitrust risks and prepare for thorough regulatory scrutiny to ensure compliance and foster innovation.
References
[1] https://dapp.expert/news/en_servicenow-and-moveworks-antitrust-review-of-acquisition-1752875089-877054
[2] https://techcrunch.com/2025/07/18/servicenows-acquisition-of-moveworks-is-reportedly-being-reviewed-over-antitrust-concerns/
[3] https://www.jdsupra.com/legalnews/servicenow-s-proposed-acquisition-of-2161382/
[4] https://www.ainvest.com/news/servicenow-2-85-billion-moveworks-acquisition-faces-doj-antitrust-scrutiny-2507/
