$2.85B acquisition under review as regulators evaluate AI consolidation in the enterprise software space
DOJ Launches Antitrust Review of ServiceNow-Moveworks Deal
The U.S. Department of Justice (DOJ) is scrutinizing ServiceNow’s $2.85 billion acquisition of AI startup Moveworks, raising concerns over market consolidation in the rapidly evolving enterprise AI space.
- According to Bloomberg, the DOJ launched the antitrust review in June 2025.
- Both companies have received a “second request” from regulators — a formal inquiry demanding more information and documents to proceed.
- This indicates heightened scrutiny and may delay or complicate the deal.
Background: ServiceNow’s AI Ambitions
ServiceNow, a major player in digital workflow and automation software, announced its intent to acquire Moveworks in March 2025.
- The deal was positioned as a strategic move to enhance ServiceNow’s AI capabilities, particularly in natural language understanding and enterprise search.
- ServiceNow had forecasted the acquisition would close in the second half of 2025.
Moveworks, known for its AI-powered employee support platform, has become a leader in enterprise AI thanks to its ability to automate helpdesk and internal IT queries using large language models.
Why the DOJ Is Watching Closely
The DOJ’s antitrust review signals growing regulatory focus on AI industry consolidation, particularly among enterprise software firms.
- As major tech players race to integrate generative AI into core products, acquisitions like this raise concerns about reduced competition and barriers to entry for smaller startups.
- Regulators are especially cautious about deals that could limit innovation or create dominant market positions in emerging tech categories.
What’s Next for the Deal?
- A “second request” typically extends the review process by several months and can lead to additional concessions or even litigation.
- While Moveworks declined to comment, ServiceNow has yet to issue a public response regarding the review.
Until the DOJ concludes its investigation, the timeline for closing the deal remains uncertain.
