Anti-Trust Policy: Should Big Tech be Broken Up?

Anti-Trust Policy-Should Big Tech be Broken up?
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Anti-Trust Policy-Should Big Tech be Broken up? The antitrust law in the U.S traces its origin to the Sherman Antitrust Act enacted in 1890. However, there have been different forms of policies regulating competition in the market throughout the history of the country. The law has played a major role in regulation of competition and ensuring fair competition and standard services and products to consumers. Technology advancement has also necessitated adoption of antitrust law. Modern technology has influenced regulators in the market in positive and negative ways. Types of Mergers The antitrust law is applied in regulation operation of mergers in the U.S. There are four main types of mergers; parent-subsidiary mergers, general mergers, and triangular mergers. In a general merger, the acquiring and target entity merge as per conditions set out by the statutes of general mergers. It is specific because it is not specific and it is applicable to all mergers (Pérez-Pérez et al., 2021). Parent-subsidiary mergers the most common and they are an example of specialty merger. Once statutory conditions are addressed, a short-form process or procedure is used. On the other hand, a triangular merger entails three businesses; the acquirer (parent), the subsidiary, and the target entity that is to be acquired. They are conducted under the General Merger Statute. Notably, the operation of the mergers is regulated by the antitrust law to ensure healthy acquisitions and merging. The General trend in market concentration the past 20 years The antitrust law and emergence of mergers has greatly improved the economy of the U.S (Miller & Sheu, 2021). The trend in market concentration shows that over the last 20 years, the U.S has experienced economic growth without a recession for the first time since 1950s. This growth is due to increased investment, reduction in borrowing, and effective regulation of competition through the antitrust law. How market concentration is measured The growth in market concentration has been shown through the Herfindahl-Hirschman Index (HHI). The measure determines market competitiveness, and it is computed as a square of the market share of the firms in the market and getting a sum of the squares (Miller & Sheu, 2021). It ranges between 0 and 10...