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The Surprising Consequences of Antitrust Actions Against Big Tech
A study of a landmark case against Microsoft found it didn’t necessarily lead to more competition or innovation.
February 24, 2023
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Summary.
One of the major questions of the day is whether antitrust actions against Big Tech platforms would increase competition and the number of new products that consumers can choose from. A study of a landmark case against Microsoft more than 20 years ago in the enterprise infrastructure software industry suggests the answer is “not always.” It found that while the number of patents in the aftermath of the decision did increase, the number of new products and entrants into the market did not, and profits decreased across the market. These findings have implications for regulators, complementors, and platforms.