Over the past year or so, more and more news stories have discussed the interplay between antitrust laws and big tech. We’ve spent hundreds of hours delving into the details to narrow down all the information to that which the average person needs to know. Take a look at our video or read the following post for more information about how antitrust laws impact big tech.
What is the meaning of big tech?
Big tech refers to large technology companies that deliver digital and physical content primarily through online platforms. Well-known big tech firms include Google, Facebook, Amazon, Apple and Netflix.
What is the point of antitrust laws?
Antitrust laws were developed and passed to limit the ability of large companies to dominate markets to the detriment of consumers. When large companies buy out smaller ones, it reduces competition. Without limits on this ability to expand, larger, cash-rich companies tend to buy out all smaller competitors, resulting in steep decreases in competition. This reduction in competition removes pressures to innovate, often resulting in stagnant infrastructure and cautious, if any, research and development. In addition, it removes large companies from price-related market pressures. Once all competition has been eliminated, companies are free to charge consumers outrageous prices, which consumers pay due to the lack of available options.