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What if the value thus unlocked doesn’t get passed on to the end customers and instead goes to a few share holders/owners? My impression of anti trust laws was
by vishnugupta 3y ago
What if the value thus unlocked doesn’t get passed on to the end customers and instead goes to a few share holders/owners?
My impression of anti trust laws was that they are meant to benefit the end customers, isn’t it the case?
- criley2 3y agoYes, businesses will return value to shareholders by default. But here's the thing about competition: If there is one monopoly, it can simply return all profit to shareholders and ignore the customer If that is split into 5 businesses, then consumers must choose. Whichever company consumers don't choose will do poorly and their investors will suffer. Whichever company does will will do well and their shareholders will be rewarded. So how does the game play out? They compete. They make a case to you why you should choose them. They introduce new products with differentiated features that will win the market. They undercut the competition and accept a smaller profit (or even a loss) in exchange for marketshare. They compete for your business. At the end of the day, the increased profit might go to shareholders, but the rest of competition (reduced prices, new and better products, etc) go to the customer.