A company split into multiple still provides taxes and employment. And the employment conditions tend to improve, since there would be more companies competing for employees.
> too strict actions may hamper innovation by signalling to innovators that you will be punished if you achieve too much
And monopolies hamper innovation by reducing the competitive pressure to innovate. Necessity is the mother of invention.
Let's look at what kind of "innovations" Microsoft used to grow - pushed an over-complicated OOXML standard, and implemented it in their products incorrectly, to make it harder for LibreOffice to interoperate, since they were forced to follow a complex standard and reproduce Microsoft's bugs: https://ploum.net/2023-06-23-how-to-kill-decentralised-netwo...
There are countless similar examples, going back to railroads charging more to carry competitor's goods.