A Giant Problem

In the age of globalization, giant “superstar companies” such as Apple and Google are skilled at eliminating competition which poses a risk for backlash. The Economist suggests that levels of market concentration in the Americas are especially worrying. Many corporations search out tax havens, evade regulations and collect data from customers. Public trust is wearing thin. The Economist urges policymakers to consider regulation in innovative ways: “Prudent policymakers must reinvent antitrust for the digital age. That means being more alert to the long-term consequences of large firms acquiring promising startups. It means making it easier for consumers to move their data from one company to another, and preventing tech firms from unfairly privileging their own services on platforms they control.” At a time when the biggest companies employ fewer people and exert more influence on government officials, a common response may be resentment, anti-business sentiments, economic populism and expectations for quick fixes. Competition must continue, and the superstars will be stronger for it. – YaleGlobal