This happens with companies who are not big enough to take over other companies, so they try to latch on the loophole in capitalism by spawning different produc

This happens with companies who are not big enough to take over other companies, so they try to latch on the loophole in capitalism by spawning different products often completely unrelated to original purpose of the company. Such company will have a competitive advantage over someone starting from scratch with a similar product. Question is should it be allowed? This ultimately leads to creation of those companies that are too big to fall, that have enough budgets to buy laws designed to keep competition at bay, do creative accounting and other measures that small company cannot afford to do. Fortunately these "startups" within a company usually fail and are not as effective as take overs. I think take overs should be illegal unless the technology your are buying is going to be incorporated into the original company line of products and does not spawn completely new business.