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by vtange 2647 days ago
Wouldn't a breakup/decentralization of Google, or any American multinational for that matter, just hand Chinese tech giants a massive advantage since the Internet as it is now heavily favors large, centralized organizations? I don't see people arguing for the breakup of the tech giants across the Pacific even though they hardly have a better reputation when it comes to privacy, etc.

By the way, I highly anticipate that the above argument will be made by said multinationals to prevent said breakup/anti-monopoly moves.

3 comments

> By the way, I highly anticipate that the above argument will be made by said multinationals to prevent said breakup/anti-monopoly moves.

Zuckerberg made that argument months ago, surprise, surprise:

https://www.recode.net/2018/7/18/17584482/mark-zuckerberg-ch...

> Mark Zuckerberg says breaking up Facebook would pave the way for China’s tech companies to dominate

Not a surprise, this is the same argument the oil industry has used for decades to oppose any kind of anti-oligopoly legislation. Basically they state that the US curbing the size of oil companies will adversely impact national interests in the Middle East and in other regions.
does that invalidate the argument?
It is a fallacy. If having a oligopoly is bad for the economy, it doesn't matter what other countries may want to do. Why weakening your economy, to satisfy the desires of an oligopoly, will be any better?
For the local national economy, an oligopoly seems possibly worse. On the international stage, it seems blindingly obvious that breaking up your local oligopoly to compete with larger foreign oligopolies or stated owned corporations is worse.

Fundamentally, this is all about negotiating power, and the whole point of breaking up a monopoly/oligopoly is to reduce its negotiating power. But that's clearly a problem when interacting with foreign companies not subject to the same anti-trust action, and will have much greater negotiating power.

This is complicated, and the argument is not a fallacy.

Following your reasoning, we should just create and feed oligopolies to avoid, god help us, becoming "victims" of oligopolies from other countries... In other words, lets kill the competitiveness of the local economy, so that other countries won't be able to do just that. This is similar to the soldier who decides to commit suicide so that the foreign army won't have the chance to do so!
You have a point. I'm just pointing out the argument you responded to is not a fallacy, it's a real concern as well. I honestly don't know what I would do if I had decision making power on this issue.

> we should just create and feed oligopolies to avoid, god help us, becoming "victims" of oligopolies from other countries...

This basically is exactly the strategy of China, at least with respect to international trade, and it's working absolutely wonderfully for them. In part, precisely because most of their competition is fragmented and paralyzed by infighting.

I believe you just described South Korea.
It's not binary like that. having an oligopoly in O&G is a negative for local economies, but it allows for more effective pricing in international markets. not only does that mean more American O&G is purchased, it means less (Russian or Syrian or Venezuelan) O&G is purchased, which is a strategic goal and may be more important to American goals than competition within local markets

The same may or may not be true of search engine or other technologies, but to look at it from a black and white perspective is not helpful.

To echo the point that decentralization of big tech might be an advantage to foreign powers, wouldn't multiple companies be harder to monitor in their exchange of IP across state lines?