, the substance of the that report failed to live up to its claims. As I concluded in my
of the article, the journalists seemed to uncover rogue employees and holes in management control rather than illegal conduct., Biden stated that “dominant Internet platforms use their power to exclude market entrants [and] to extract monopoly profits.” He then directed the Department of Commerce to study and collect opinions on Apple’s and Alphabet’s “mobile application ecosystem.
My own empirical studies of these platforms find that they are beneficial to other businesses and consumers. My 2021 with Tejaswi Channagiri Ajit found that thousands of businesses rely on Apple and Alphabet and uncovered no evidence that the platforms exert market power. Indeed, businesses act as if the two are in strong competition with each other.on app stores with Jakub Tęcza and Peter Wang indicates that third-party app developers expand and innovate in response to competition from Apple. Only on the Android platform does the introduction of the app store’s own app lead to competitor losses.
Members of the Biden administration will have their cake and eat it too if their attacks on Alphabet, Amazon, and Apple are successful. But consumers, investors, and employees will pay for it.blog and is reprinted with kind permission from the American Enterprise Institute