Recently the tech stock market is facing some serious pressure. The Fed is launching antitrust probe into most of the US big tech companies, including Apple, Facebook and Alphabet; the news has seriously added downside pressure on these stock prices. I think that this is bad for these large tech companies, but these companies will not be broken up, instead they will pay to get a settlement with the government.
The tech companies have grown to enormous sizes, it is almost impossible for the government to find a fair and efficient way to break up these companies. Often sizes can provide better productivity and efficiency. This is also true for these large tech companies, may be even more true. The most obvious example is Amazon. If Amazon did not have its current size, we would not have the next day delivery for most regions. Some improvement is only made possible because of the size. A larger company has a larger number of clients and users (users are not necessarily the clients), they collect more data. By analysing the data collected, they can better understand the market and their users and clients, thus increasing the likelihoood of providing better services at lower costs. This is at least partially, and will definitely be used by these tech companies for defending themselves. Breaking up large tech companies is not something impossible; however, to break up large tech companies correctly is not easy. Breaking up companies correctly means these things. First, breaking up companies will significantly increase the market competition. Secondly, the productivity and the market price will not be affected significantly. Thirdly, it will make these companies almost impossible to grow to their current sizes in the future.
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