CMA’s misguided approach to Big Tech
19 July 2023
SUGGESTED
Government and Institutions
Press Release
Economic Theory
25 June 2024
Cento Veljanovski writes for City AM
IEA Fellow Cento Veljanovski has written for City AM explaining how excessive CMA regulation in the tech sector will only slow down innovation and hurt consumers.
Cento wrote:
“The CMA’s u-turn on the Microsoft/Activision deal is a sign that the competition regulator might be starting to understand its approach to Big Tech will bring no good to the UK.
“The CMA offered no evidence or credible reasoning supporting its decision. This was a vertical merger, involving companies that are not directly competing with one another. For decades, such mergers were considered pro-competition because they enable greater efficiencies.
“Hayek saw the economy as a complex, dynamic and evolving system that could not be directed by technocrats. Big and small tech companies are not like old-style big industrial monopolies which are static, sleepy, and over-price their products; they are dynamic, innovative, invest massive amounts in research and development, and generate huge consumer benefits.”
You can read the full article here.
Cento wrote:
“The CMA’s u-turn on the Microsoft/Activision deal is a sign that the competition regulator might be starting to understand its approach to Big Tech will bring no good to the UK.
“The CMA offered no evidence or credible reasoning supporting its decision. This was a vertical merger, involving companies that are not directly competing with one another. For decades, such mergers were considered pro-competition because they enable greater efficiencies.
“Hayek saw the economy as a complex, dynamic and evolving system that could not be directed by technocrats. Big and small tech companies are not like old-style big industrial monopolies which are static, sleepy, and over-price their products; they are dynamic, innovative, invest massive amounts in research and development, and generate huge consumer benefits.”
You can read the full article here.
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