2 ms·
The problem with current initiatives for regulation is that they are attempts to regulate how Big Tech does business. Outside of some specific limits on busine
by Merrill 7y ago
The problem with current initiatives for regulation is that they are attempts to regulate how Big Tech does business.
Outside of some specific limits on business transactions, such as forbidding tie-in sales, antitrust does not limit the way companies do business. So breaking up Google into 8 companies, like the Bell System, would not limit the behavior of the Baby Googles.
If either there is very strong economies of scale or there is a need to control the behavior of the companies, regulation is the more effective tool. The chief objective of regulation is to limit the return on investment that the natural monopoly can earn in order to prevent monopolistic price gouging. However, regulation can also govern some aspects of business conduct as well.