The New York Times: The monopolization of America
The New York Times, November 28, 2018: The monopolization of America
The federal government, under presidents of both parties, has largely surrendered to monopoly power. “The ‘anti’ in ‘antitrust’ has been discarded,” as the legal scholar Tim Wu puts it in his new book, “The Curse of Bigness.” Washington allows most megamergers to proceed either straight up or with only fig-leaf changes. The government has also done nothing to prevent the emergence of dominant new technology companies that mimic the old AT&T monopoly.
This meekness has made possible the consolidation of one industry after another. For a long time, though, it’s been hard to figure out precisely how much consolidation. The available statistics just aren’t very good, which isn’t an accident. In 1981 — around the time that the Reagan administration was launching the modern pro-monopoly era — the Federal Trade Commission suspended a program that collected data on industry concentration.
Fortunately, researchers in the private sector have recently begun filling in the gaps. On Monday, the Open Markets Institute — an anti-monopoly think tank — is releasing the first part of a data set showing the market share that the largest companies have in each industry. Big companies are much more dominant than they were even 15 years ago. Mergers are one big reason. Another is the power of so-called network effects — in which the growth of, say, Facebook makes more people want to use it.