Breaking Up Tech Companies Will Harm Consumers and Halt Industry Dynamism
The House Judiciary Subcommittee on Antitrust is holding a hearing today to consider the merits of antitrust regulation of large technology companies, including Amazon, Apple, Google, and Facebook.
CEI research fellow Patrick Hedger said:
“Today’s House Judiciary Subcommittee on Antitrust hearing won’t have much, if anything, to do with actual antitrust concerns. Facebook, Apple, Google, Amazon, and other major online platforms are all vigorous competitors in a number of areas. The tech industry is marked by strong competition in terms of both quantity and quality, which benefits consumers in ways they could not have even imagined just 10 years ago and shows how quickly these markets can change.
“Instead of working to further lower barriers to competition, members of Congress will again air grievances and threaten companies with antitrust action in order to achieve unrelated, political objectives. Under the banner of investigating ‘innovation and entrepreneurship’ in the tech sector, hearings like the one we are about to witness are entirely counterproductive, diverting companies’ focus away from better serving their customers and users. Proposed regulations in this space will slow, if not halt the dynamism that has defined the tech sector as new red tape forms a major barrier to entry.”