4 ms·
The problem with these recent FAANG antitrust cases is that action is pretty narrow. Google lost its Adwords case in the EU: using data gathered via the adword
by dalbasal 6y ago
The problem with these recent FAANG antitrust cases is that action is pretty narrow.
Google lost its Adwords case in the EU: using data gathered via the adwords advertising monopoly to support its search monopoly. $1.5bn fine. Google will happily pay this for anything that meaningfully strengthens their position in this market.
Besides the fine, all they have to do is stop doing the specific, narrow "monopolistic behaviour" that prosecutors were able to prove. This just isn't how monopoly works, and modifying some specific behaviour doesn't affect much.
Whack-a-mole is almost pointless. Antitrust is about structure, inherently. If antitrust action doesn't lead to structural changes, I don't see any point in it.
Similar cases will likely be prosecuted against Amazon (and google) in multiple jurisdictions with the adwords case serving as a (very narrow) template for prosecuting data/marketplace monopolism. Hence amazon. We can probably expect a similar result. A cost-of-doing-business fine and some updated policies about sharing data between the marketplace and retail arms.
If prosecutors prove both a monopoly position and monopolistic abuses (it did, and will), this needs to be deemed proof of a broad problem. Other monopolistic abuses need to be assumed. The fix needs to address the problems, known and unknown broadly. For example, by separating the marketplace and participant (adwords & search; amazon marketplace & retail) into seperate businesses.
In this FB case, it's about buying all the competition: whatsapp, instagram, etc. A fine or a policy update don't fix this. Force a sale of these companies. Ban FB from acquiring companies entirely, or social media companies at least.
Ultimately, the regulator has already failed here. Those acquisitions should not have been allowed in the first place.
Antitrust isn't about punishing bad behaviour. It's about dealing with bad structures.
That said, it does feel like antitrust cops are working up to it, gradually.