Is the Digital Economy Too Concentrated?
32 Pages Posted: 19 Nov 2020 Last revised: 11 Mar 2021
Date Written: November 11, 2020
Concentration in the digital economy in the United States has sparked loud criticism and spurred calls for wide-ranging reforms. These reforms include everything from increased enforcement of existing antitrust laws, such as challenging more mergers and breaking up firms, to an abandonment of the consumer welfare standard. Critics cite corruption and more systemic public choice problems, while others invoke the populist origins of antitrust to slay the digital Goliaths. On the other side, there is skepticism regarding these arguments. This chapter continues much of that skepticism.
Keywords: Antritrust policy, law & economics, concentration, competition, information technology, Big Tech, market power, innovation
JEL Classification: K21, L12, L13, L41, L86
Suggested Citation: Suggested Citation