Recently big tech companies have been in the spotlight, and not for the right reasons. As the tech giants like Google, Facebook and Amazon continue to grow without resistance, people have started to wonder if they have been partaking in anti-competitive behaviours.
Google’s parent company Alphabet, in 2018, raked in a massive $136.8B, Facebook pulled in $55.8B, and Amazon earned a ridiculous $288.3B. Combined, these three companies earn more ($480.9B) than the GDP of South Africa ($349.4B).
Following multiple incidents where it was found that there was misuse of user’s information, lawmakers in the us have been pushing for the regulation of big tech companies, with some even push for these companies like Facebook, Google, Amazon, and Comcast to be broken up.
The DoJ has not yet commented as to which companies will be probed during the antitrust investigation.
This probe is designed to address the speculation that that these giants having been stifling competition by buying out start-ups, thus preventing any formidable competition from being created. Currently these tech giants have monopolies and duopolies in their market segments.
“Without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands,”
Makan Delrahim – Assistant Attorney General of the Antitrust Division.
If policies are put in place to regulate these companies, it may hurt the US economy in the short term but it will strengthen it in the long run. More competition in any segment is a good thing. Competition breeds innovation and is ultimately good for the consumer.