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Innovation, Not Intervention, Most Effective at Breaking up Monopolies

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Mathew Ingram of GigaOm asks:

"Do government antitrust measures help break up monopolies and increase innovation?"

Writes Ingram:

"Not according to new research from the Technology Policy Institute, which looked at the high-profile antitrust investigations of IBM, AT&T, and Microsoft.The research found that in each case the innovation that changed the industry did not come as a result of government intervention, but from sources that regulators could not possibly have predicted.This is likely to be music to the ears of Google, which has come under increasing pressure from both regulators and critics as it expands beyond search into other areas—including a controversial acquisition offer for travel industry player ITA that is currently under review."

Ingram explains that "Robert Crandall, a senior fellow in economics at the Brookings Institute, and Charles Jackson, a computer science professor at George Washington University, found that despite the years of political and legal work that went into these high-profile antitrust cases, in the end technological change was what had the most impact on the market, not government antitrust remedies."

Read Crandall and Jackson's findings HERE.
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