Can’t tech it from them

The public opinion seems to be that the market power of Big Tech companies needs to be controlled, if necessary by splitting them up. It is easy to understand that sentiment. Big Tech knows almost everything about us and may behave in a way that many people do not like, notably in how they use our private data. Moreover, their market power is a threat to competition in digital markets, potentially leading to higher prices, a suboptimal rate of innovation and efficiency losses in the form of a social deadweight loss….

However, sanctioning companies under competition law would set precedents. So, splitting up companies under competition law should be considered as a measure of last resort, only to be used if there is ample proof of severe and repeated abusive behaviour. We can also make use of regulatory options available under consumer protection law, IP law (regulating limits to the extent of patent or copyright protection) and privacy law (such as the GDPR), besides the available options under competition law….

It follows that the adverse effects first need to be proven. For example, many consumers probably do not mind that their private data are being used by Big Tech companies, as long as they receive better products or services in return. Furthermore, regarding rival firms, we should only protect those rival firms that actually bring something valuable to the market for consumers. It would be inefficient to protect small and inefficient competitors at all cost….

From ‘Splitting Up Big Tech Companies? Let’s Think

About the Consequences!’, Maastricht University