Global antitrust and the challenge of Big Tech

The issue is about checking their monopoly power while encouraging their positive externalities and consumer surplus

There are ongoing investigations worldwide, including in the European Union and the United States, on the abuse of monopolistic power by the Big Tech firms, especially Facebook and Google. Many compare this with the earlier antitrust investigations in the U.S. on the telecom industry and the break-up of the AT&T dictated by the Department of Justice in its Modified Final Judgment in 1982.

Key differences now

However, there are important differences this time around when compared with the earlier investigations. First, the information good that is being provided by the Internet firms of today, is largely non-rival. The consumption of information by one does not alter the value for the others. However, in telecom, due to limited network capacity, the consumption by one has an effect of decreasing value for the others and, hence, is rival in nature.

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