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Monopolies can and do occur outside of mergers. And sometimes mergers allow smaller firms to join together to better compete with more dominant firms. I think
by voisin 4y ago
Monopolies can and do occur outside of mergers. And sometimes mergers allow smaller firms to join together to better compete with more dominant firms.
I think the answer is to better enforce anti trade laws to ensure competition.
- lordnacho 4y ago> Monopolies can and do occur outside of mergers. They can, but often you find a firm that has grown organically ends up swallowing up a load of smaller firms. For sure trade laws need to actually be followed, but there's a discretion there that is vulnerable to lobbying.
- michaelt 4y ago> Monopolies can and do occur outside of mergers. You're right - and we might want additional rules to address that. But IMHO it's one thing if facebook gains market dominance because users choose their product - that might just be a sign they've got an excellent product. On the other hand, if facebook feels the need to buy Instagram and Whatsapp because users aren't choosing facebook's product? That's a completely different matter.