$4.2B revenue with 40% market share has $0 market share tax and keeps $4.2B; $5B revenue with 50% market share has $800M market share tax and keeps $4.2B; $7B revenue with 80% market share has $2.8B market share tax and keeps $4.2B;
This would reduce the incentive to grow market share above the threshold. A 40% threshold allows for two companies to max out market share and a 30% threshold allows for three companies to max out market share.
[1] https://en.wikipedia.org/wiki/Breakup_of_the_Bell_System [2] https://www.gartner.com/it-glossary/smbs-small-and-midsize-b...