These companies have an advantage over the country.
“It is important for regulators to understand that they can not shape the economy, and if they want to formulate the right policy, they should be aware of their capabilities – but also recognize their limitations.
“Even in terms of the legal battle – for every strong attorney in the US government, companies have a stronger lawyer, the government can always offer less money than companies, and it also has less access to information. The government has almost unlimited power to ask for discovery of documents, but the analysis of the information is very complex – it requires high-level data capabilities and a server farm to store the information. ”
Loss of jobs and not high prices
Orbach (49) studied for a bachelor’s degree at Tel Aviv University, and received his second and third degrees from Harvard University. At the University of Arizona he has been teaching for 15 years. Twenty years ago, he did internship at the so-called Antitrust Authority in Israel. “At the time, Microsoft controlled the personal computer market, sending them a letter that we were considering announcing as a monopoly, and we received letters from lawyers who did not have a physical place to hold, so in the future people would not believe it was a company that held 95% of the market. The direction of the economy – there are many such companies that reach huge market segments – so much so that we are no longer talking about market shares but about parts of the entire economy, “he says.
What are the current complaints about technology giants? In general, that they have accumulated too much power, leading them mainly to harm to competition, along with infringement of privacy. However, if in the past damage to competition led to price increases, in the new economy this is not the case. “In terms of antitrust laws, Amazon contributes to competition, it does not eliminate it.” At the end of the 19th century, the crushing of competition led to high prices, and today the result is a loss of jobs. The consumer can buy at a lower price on Amazon, but the store owner – loss of business or workplace is traumatic.