Antitrust regulation is designed to increase competition by eliminating attempts to monopolize an industry (other than through better products or better management) as well as by attacking certain patterns of illegal conduct (i.e. price fixing and exclusionary contracts that foreclose competitor business). For this forum, discuss your belief on “tech giants” violating antitrust laws. Do you feel Facebook, Google, Amazon, Apple, Microsoft etc. are in violation of such antitrust regulation?
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Antitrust laws are implemented by governments to safeguard consumers from unfair business practices. McGuigan, Moyer, & Harris (2017) discovered that some organizations employ predatory strategies to improve their competitiveness. Therefore, governments have to regulate these questionable business operations that involve pricing and creation of monopolies. The operations influence market performance and conduct by interfering with resource allocation and full employment. They also reduce merits associated with new technologies such as cost reduction and quality improvement (McGuigan et al., 2017). Eventually, the organizations exploit consumers and increase unemployment.
Facebook, Google, Amazon, Apple, Microsoft are some of the dominant technology organizations. I believe they are violators of anti-trust laws and have been facing several litigation cases (Panettieri, 2021). Therefore, most of their operations do not comply with regulators and government agencies’ regulations. The anti-competitive strategies they apply improve their monopoly power in the market. They have reduced rivalry in providing services in social media, app stores, and cloud services (Panettieri, 2021). For instance, Google has phased out several organizations from providing internet search services.
Romm, Zakrzewski, & Lerman (2020) discovered that several U.S. states have suffered from Apple’s deceptive strategies. The study also noted the company has deals with Amazon.com to raise their dominance in e-commerce operations. The practices focused on improving traffic into Amazon.com and raise Apple’s sales. Moreover, Apple, Google, and Dropbox should cease exploiting customers in the cloud computing provision market. They achieve their anti-competitive goals despite existence of antitrust laws. Therefore, governments should improve the effectiveness of the regulations to control the operations of the tech giants (Romm et al., 2020). They can focus on the merging laws to prohibit increased purchase of upstarts in the technology market.
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Over several years, these four companies have committed themselves to anti-competitive conduct, undermining their smaller prospective competes and maintaining an over-dimensional market share. And they, therefore, have an enormous effect on legislation, policies, and subjective reputations throughout their range as a byproduct of this metastatic expansion, making data confidentiality violations by these companies disastrous (Miller, 2021). The same strategy is followed by Google, Amazon, MIcrosoft, and Facebook. The technology giants possess a “platform advantage” – the encouragement and capability over opponents that rely on their networks to prioritize their products and services. They argue that their products are improved and that they help consumers.
An innovator may build and continue to break a good offering or service since Big Tech controls and plays the game. Amazon typically restricts market vendors from selling items it wishes to promote and forbids companies to sell their respective products by seizing sales profit for themselves (Goldstein, 2019). Coupled with Amazon being able to leverage its rivals to produce copies of successful Amazon items, this exclusive behavior eliminates rivalry on merit and gives it a preferred ranking on Amazon.com.
Like Microsoft in Mainframe computers, Google exploited its dominance in mobile platforms to rule out competitors in mobile apps to eliminate rivalry in Internet navigators. Google was also accused of priorities for its search engine results, eliminating competitors for ratings, maps, pictures, and trip booking services. On its part, Facebook exploits the privilege of its platform to select what material we view. For customers, the energy for its advertising strategy, Facebook contends alongside news editors and content providers (Lakshman, 2019).
Big Tech firms today violate the patents of tiny rivals since they will rule the industry in the future. Tech giants are indeed competitors and platform proprietors, and they thus skew the field towards them (Ghaffary, 2020). There have been right currently numerous concurrent government research in the US focusing on each of the four big giants’ business practices.
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