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With Japan, Europe, and the United States, big tech companies like Apple, Facebook, Amazon, and Alphabet will be in one huge legislative umbrella on market monopoly.
As the global market continuously recovers from the coronavirus pandemic, big-tech companies’ market monopoly is proving to be a headache to most governments. Hereby, the United States, Europe and Japan have all joined forces to control the overall effects of big tech companies especially in their respective jurisdictions.
United States, Europe and Japan on Market Monopoly
Media outlet Reuters has reported that the three regulators will closely watch tech companies that violate the set antitrust rules. Ostensibly, since the global war has significantly shifted from the guns and bomb ideology in the past few years, the financial sector is the new weapon that the leading developed economies are seeking to control. With tech companies acquiring small companies and controlling huge populations’ critical data, governments feel obliged to regulate the sector to avoid market monopoly issues.
On the brighter side, with different regulators working together to control big tech monopoly, small capped businesses and startups will have a chance to grow independently. In addition, the customers can have a bigger range of choice that is not controlled by one entity.
Notably, the United States together with Europe and Japan will be in a better position of countering the fast growing China tech companies, especially in the 5G network rollout in different continents. China might be compelled to look for allies, possibly Russia, the United Kingdom, Africa, Australia, or India to counter the United States’ move.
However, it will be all on China to decide on where and how to play next. China is far in the digital currency rollout process and largely controls Bitcoin mining, which is the mother cryptocurrency viewed as a revolution in the financial industry.
The Bigger Picture
With Japan, Europe and the United States in one accord, big tech companies like Apple Inc (NASDAQ: AAPL), Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), and Alphabet Inc (NASDAQ: GOOGL) will be in one huge legislative umbrella on market monopoly. Their global touch will be controlled both in America and overseas. Hereby, market monopoly can be tamed at a better angle.
In Japan, the country is investigating big tech acquisitions on the ground of anti-monopoly. Kazuyuki Furuya, chairman of Japan’s Fair Trade Commission (FTC), said Tokyo could open a probe into any merger or business tie-up involving fitness tracker maker Fitbit FIT.N if the size of such deals are big enough.
Earlier in the year, EU antitrust regulators launched an investigation into a $2.1 billion deal by Alphabet to purchase Fitbit. Forward, European regulators can now handle big tech companies that have been acquiring struggling companies due to the coronavirus pandemic crisis.