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Antitrust crusaders have built up serious momentum in Washington, but so far, it’s all been theory and talk. Groups like Open Markets have made a strong case that big companies (especially big tech companies) are distorting the market to drive out competitors. We need a new standard for monopolies, they argue, one that focuses less on consumer harm and more on the skewed incentives produced by a company the size of Facebook or Google.
Someday soon, those ideas will be put to the test, probably against one of a handful of companies. For anti-monopolists, it’s a chance to reshape tech into something more democratic and less destructive. It’s just a question of which company makes the best target.
To that end, here’s the case against four of the movement’s biggest targets, and what they might look like if they came out on the losing end. (Note: Apple was too much of a conventional retailer to make the list, but if you’re wondering what an antitrust lawsuit against Cupertino might look like, this is a pretty good place to start.)
GOOGLE: THE CONGLOMERATE
Our best model for tech antitrust is the Department of Justice’s anti-bundling case against Microsoft in the ‘90s, which argued that Microsoft was using its control over the PC market to force out competing operating systems and browsers. If you’re looking for a contemporary equivalent, Google is probably the closest fit. On a good day, Google (or Alphabet, if you prefer) is the most valuable company in the world by market cap, with dozens of different products supported by an all-encompassing ad network. Google also has clear and committed enemies, with Microsoft, Oracle, Yelp, and even the Motion Picture Association of America calling for restrictions on the company’s power.
Some of those restrictions are already starting to take shape in Europe, as Google faces a $5 billion fine for alleged anti-competitive Android bundling and a separate $4 billion GDPR case that alleges stingy opt-out provisions. Last week, Sen. Orrin Hatch called on the Federal Trade Commission to investigate anti-competitive effects from Google’s dominance in online ads and search, hinting that similar regulatory pressure may not be far off in the US.
But according to Open Markets’ Matthew Stoller, the best long-term remedy for Google’s dominance has more to do with Google’s acquisitions. “If you’re looking for a silver bullet, probably the best thing to do would be to block Google from being able to buy any companies,” says Stoller. “Suddenly, you have to compete with Google, you can’t just be bought out by Google.” Read more
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