WASHINGTON—Ahead of a Senate Judiciary subcommittee hearing addressing whether America has a monopoly problem, the Information Technology and Innovation Foundation (ITIF), the world’s leading think tank for science and technology policy, released the following statement from ITIF President Rob Atkinson, co-author of the book, Big Is Beautiful: Debunking the Myth of Small Business:
The empirical evidence shows that the panic around monopolies in America is vastly overstated. Many industries have seen no increase in concentration, and among those that have, the lion's share have been from very low levels to slightly higher. And where there seems to be concentration, it’s important to consider the relevant market at hand. For example, when it comes to Internet services like search and social media, the relevant market is advertising, where competition is alive and well. Moreover, national concentration measures obscure the competition that also exists in local markets.
Policymakers and competition authorities should certainly be vigilant against anticompetitive conduct. But they should also ensure they examine legitimate competition concerns, not perceived dominance.