Is the Digital Economy Too Concentrated?

Abstract

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