President-elect Trump is poised to make a pivotal decision on antitrust policy, with the Biden administration’s ill-advised crusade against America’s leading tech companies hanging in the balance. The stakes are high, as a successful campaign against digital companies could irreparably damage the country’s leadership in the digital economy.
The Federal Trade Commission’s (FTC) recent case against Meta, Facebook’s parent company, highlights two dangerously flawed ideas: an arbitrary definition of “market” based on select product features and an attack on acquisitions as a legitimate path to growth. The FTC claims that Meta dominates a nebulous “personal social networking” market, and that companies must build internally rather than acquire all new capabilities.
However, this approach is perilous for every successful tech platform. If regulators are allowed to segment markets based on such distinctions, nearly every digital business could be deemed a monopolist in its own narrowly defined space. The health of the digital economy depends on constant innovation, and if firms are discouraged from taking risks, it could lead to a chilling effect on investment and growth.
The FTC’s second flawed idea compounds the problem by suggesting that acquisitions of potentially successful products are inherently anticompetitive. However, acquisitions enable innovators with great ideas but limited resources to see their inventions scale and thrive under the umbrella of larger firms.
If Trump charts a more balanced course, it could foster customer choice, invention, and growth. This approach would prioritize consumers over bureaucratic theories, and strike a balance between regulatory protection and business realities in the digital age. The fate of America’s digital future – and its broader economic prosperity – depends on it.
Source: https://thehill.com/opinion/technology/5020363-trump-antitrust-tech-companies