Congressional bills would ban tech mergers over $5B
engadget.com
engadget.com
If it was $5B, then companies with that kinda cash can just vacuum up any early stage companies that could even come close to growing into sizable competitors. In a way, it kinda seems like kneecapping the exit potential for those companies growing and getting acquired.
The current (fairly large) crop of startups whose exit strategy is to be acquired at large valuations.
Despite peoples best hopes and wishes, huge multinational corporations and businesses have not passed any meaningful efficiencies or savings to consumers or workers. Any benefits from economies of scale are quickly devoured by investors and high level administration. While good for those few, it comes at the expense of everyone else who have most of their choices taken away.
At the moment these companies are acting more like viruses, infecting and feeding off smaller companies to stay alive, and often killing them to reduce competition.
I know many people upon reading that would say "what about my payout for the hard work I put into my startup". However, I feel like this culture of selling once you are successful only exists because once you are big enough to become a target, the prospect of continuing to fight against one of these giant monopoly giant-tech-monoliths is dauntingly impossible. If mergers were banned in the first place it would be much smoother sailing all the way to the top.
Then again I've never experienced a startup so I probably have no idea what I'm talking about.
I think it's important to preserve that kind of merger and codify the anticompetitive behaviors and write sensible legislation to prevent that.