The “trust” of antitrust doesn’t exist any longer. Yet the “anti” does, and it could get a presidential decree in the week ahead.
In the 19th and early 20th centuries, trusts were formed so different companies would appear to be separate. However, as was the case with the Standard Oil Company Trust under John D. Rockefeller, the legal structure was an operational mirage and the trust worked to consolidate and stamp out competition.
Thus, “antitrust.”
Robber barons’ trusts gave way to the modern corporation. But the ruthless, take-no-prisoners, crush-the-competition ambition has persisted as an archetype of today’s corporate behavior. Few companies possess the breadth, depth and financial size to dominate their markets in ways big tech firms do. Amazon, Google, Facebook and Apple are beloved and abhorred for their products and services.
Fully participating in today’s modern economy is nearly impossible without becoming a consumer of at least one of these companies. Shopping, searching the internet, social media, and apps have become commonplace and beneficial. To varying degrees, these companies also have mastered turning their consumers into their products.
Pressure to act, specifically against these $1 trillion-plus technology behemoths, has been building. Six antitrust reform bills were introduced into the House in June. Last week, a federal judge threw out two antitrust lawsuits against Facebook. In one of the rulings, the judge said the federal government simply did not present evidence that Facebook is a social media monopoly.
The next development could come in the week ahead. President Joe Biden’s administration has been preparing a new executive order it argues aims to promote corporate competition. It’s doubtful the language will single-out the technology industry. Instead, supporters will argue the federal government can do more to spark competition across the economy — banking, airlines, technology and so on.
Shareholders have trusted these tech companies to continue growing. That trust could be tested by how any presidential order turns into government agency actions.
