Breaking up Google could have handed more power to other monopolies
The antitrust balloon-squeezing phenomenon is well documented.
Antitrust advocates are upset that Google has avoided breaking up despite being found guilty of violating antitrust laws with its advertising business. Breaking up big tech giants can create or reinforce monopolistic power elsewhere. In 2012, the DOJ sued Apple and major book publishers for collusion, leading to Amazon's dominance over book publishers and rising consumer prices.
Breaking up Google could supercharge other monopolies, such as Apple dominating low-cost smartphones if Android were spun off. Assessing the long-term impact of breaking up tech companies is challenging, as antitrust law operates case by case. The best solution to fostering competition is to prioritize disruptive new technology through increased funding for university research and tax incentives for startups, while increasing taxes on big, multinational corporations.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
