Tech giants vs internet startups | IN 60 SECONDS

The Wall Street Journal recently ran a
story headlined, “The New Copycats: How Facebook Squashes Competition From
Startups”. Basically, the tech giants can buy out any startup they want or
aggressively imitate them and drive them out of business.
How alarming should we find this? Well, judging by the growing number of voices
calling for regulating big tech, from Tucker Carlson to Elizabeth Warren, I
think I’m supposed to be pretty alarmed. But what is the public policy problem
here? Acquisition is typically a good thing for the startups themselves, and
the startup sector is still pretty vibrant. The main concern seems to be
whether the market dominance of these tech giants is a bad thing. It’s tough to
make that case from a consumer welfare standpoint, since most of these products
are free. Plus, these companies are certainly acting as if their dominance
is tenuous, given how closely they track their potential competitors. In other
words, the sheer size of big tech shouldn’t concern us too much. Longer
term, it’s their control of big data that is likely to be where the antitrust
regulatory battle rages. To learn more about my take on regulating big tech,
check the links in the description below. Also, let us know what other topics you
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