MONOPOLY

The Sherman Antitrust Act was the first federal act that outlawed monopolistic business practices. In the US Sec 2 of Sherman act, 1890 makes it unlawful for a company to achieve monopoly power, and Sec 7 of Clayton act 1914 prevents mergers of companies that will lessen competition or lead to a monopoly. The Federal Trade Commission protects consumers from any kind of unfair practices taking place in the market places. Similarly in India, the Competition Commission of India has the responsibility to ensure fair and healthy competition in economic activities, to eliminate practices adversely affecting competition. All over the world, similar government agencies are constantly developing regulations and laws to keep the marketplace clean and just.

Big tech companies are now under the intense scrutiny of competition watchdogs around the world. In the US antitrust charges are filed against Google and are accused of protecting the monopoly, bipartisan lawsuits filed against it say Google search engine and play store is anticompetitive. French completion watchdog fined google $268 million for abusing its dominant position and asked it to pay for news to the publishers. Australia too directed google to pay for news content.

In India, big techs are at loggerheads with the government over the new IT rules. Both have different perceptions regarding certain aspects. The new IT rules make it mandatory for companies having a users base of more than 50 lakhs(5 million) to appoint a chief compliance officer, nodal officer, and grievance officer in the country all residents of India. Also in India, data protection laws are at a very nascent stage and are underdeveloped and incapable of protecting its citizens’ data from any kind of misuse.

Developed nations are now recognizing the unquestionable power big companies enjoyed so long. Recently G7 countries agreed on a 15% global minimum corporate tax which they say aims to discourage large corporates from avoiding tax by shifting bases.

So basically nations arround the world are conserned about tax evasion, unfair business practices, and lack of rules and regulations to restrict powers of monopolistic companies.While it is legal for companies to adopt strategies for reducing taxable income, tax evasion tactics by using it dominance is unacceptable.There is difference between gainging monopoly and afterwards using it for sustaining monopoly. I am of the option that if companies are providing quality products and services and gaining monopoly it’s fine but sustained hold of monopoly for long period can make them all too powerful, and that is why we need dynamic regulations in place to check their power.

Categories: Business, News, Tech

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