Question

Below is a link to the New York Times articles on anti-trust laws. and competition issues. there are articles on different industries and the conflict of law as to whether the types of businesses are allowed or not. There is also much controversy within one of the articles on Tech giants. What are your thoughts after having read one or more of these articles? You may certainly use these as references to add to your posts. https://www.nytimes.com/topic/subject/antitrust-laws-and-competition-issues

Answer 1

Let us take the following article as a reference :- https://www.nytimes.com/2018/03/02/opinion/the-supreme-court-case-that-could-give-tech-giants-more-power.html?rref=collection%2Ftimestopic%2FAntitrust%20Laws%20and%20Competition%20Issues&action=click&contentCollection=timestopics&region=stream&module=stream_unit&version=latest&contentPlacement=2&pgtype=collection

The anti-trust laws ensure protection to small businesses against cartel-like behaviour by large enterprises. It also prohibits a monopoly situation in the market. The news article that is taken as a reference points out that large tech companies and financial service providers have grown powerful enough to influence the prices in the market and eliminate competition. The anti-trust laws that exist prohibit such actions. However, the second circuit has offered a way out of this situation for the tech giants and financial service providers who indulge in activities which steers consumers and reduces the competition. This is ensured by providing a way out by means of classification of the firms as 'two-sided'. 'Two-sided' means that the firms cater to different categories of customers including direct consumers, sellers and advertisers. This means that just as the article states, other industries like banking, airplanes, news organizations etc. too fall under the 'two-sided' category.

Going by what the article says, an economist's standpoint would be analyzing the scenario from a economic perspective. It is a situation of big fish eats the little fish, a scenario where pure competition is at play and the larger companies are gaining more ground by the use of various market capture techniques. The question of whether it is right or wrong and what has to be done, depending upon the available legal provisions, would be best left to a competent juror.