Big Tech: The History and Future of Antitrust Regulations

in #faamg5 years ago

Political choosing aside, 2 in 3 Americans support the breakup of Big Tech companies. FAAMG (Facebook, Amazon, Apple, Microsoft, and Google) is worth 68% of U.S. GDP Growth. As Big Tech companies continue to expand, free speech violations are growing, as well as issues with Antitrust. More than half of Americans use FAAMG platforms; so as of now, Big Tech is the problem and solution.

In 1890, the Sherman Antitrust Act outlawed monopolies and cartels in attempts to promote economic competition. This was unpopular among consumers, and angered competition as they were closed out of production processes.

In 1914, the Clayton Antitrust Act refreshed the policies of the 1890 Act - prohibiting anti-competitive mergers and predatory pricing, allowing non-benefiting parties to file private, antitrust suits, and placed the FTC and DOJ in charge of Antitrust enforcement.

In 1998, the DOJ (Department of Justice) filed suit against Microsoft alleging monopolistic performance as their free browser put Netscape - their top competitor - out of business. In 2000, the DOJ ruled Microsoft to be split into companies, but the ruling was softened once Microsoft appealed.

Today, Antitrust laws empower regulators to stop mergers that reduce competition. Yet, Big Tech corporations face very minor push back on their major acquisitions. For example, Google - now known as Alphabet - owns YouTube, Waze, and many more; Facebook owns WhatsApp and Instagram; and Amazon owns Whole Foods and Zappos.

The future of antitrust is foreseeable, although complicated. Continue reading for more information on an in-depth analysis on the break up of Big Tech.
Infographic source: https://greatbusinessschools.org/breaking-up-big-tech/Breaking Up Big Tech.png