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Monopolies probably aren't the right angle to approach this from. A corporation can be "too large" without being a monopoly, though in the past that was their p
by Mountain_Skies 4y ago
Monopolies probably aren't the right angle to approach this from. A corporation can be "too large" without being a monopoly, though in the past that was their primary route to getting to that size. Perhaps it would be better to simply have a law that any company whose average market cap during a two year period exceeds 1% of the country's GDP is automatically broken up. Such a law might not even need to be used, as companies wanting to avoid a government lead break up would on their own either start spinning off parts of the company or paying dividends to shareholders to shed value from the company. Shareholders could then use those dividends to invest elsewhere or use it for spending in the economy. Buying up competitors or merging with them would also be tempered at the higher levels since it would risk creating an entity that gets broken up by the government.
I'm sure the companies with the potential to be broken up by such a law would be very much against it and spend whatever it took to defeat the law. They might also try to convince the public that they have to be allowed to be gigantic in order to compete with similar entities from other countries that don't have a limit on size.