British think tank ResPublica has claimed current competition law is not fit for purpose, running the risk of companies such as Google and Facebook creating digital monopolies and ultimately a losing position for the consumer.
In its latest report on the industry, ‘Technopoly and what to do about it: Reform, Redress and Regulation’, the think tank argues competition law needs to stop privileging big business and focus on the benefits of small businesses and market structure.
The team is pointing towards the ‘kill in the crib’ emerging trends, with the super-powers of tomorrow acquiring any business which is deemed a potential threat in the long-run.
Of course this is standard business practise, but without a more stringent view on what should and shouldn’t be allowed, acquisitions could lead to the death of competition.
“Investment in patents, copyrights and computerised systems has become a new form of intellectual capitalism.
If unconstrained by competitive alternatives, there is a danger that these companies can eliminate all potential competition through acquisition strategies.”