Following anti-monopoly investigations in Europe and the United States against international technology giants, Chinese Communist Party officials recently mentioned “anti-monopoly” for the first time in their economic research work. It seems that as the epidemic continues to hit the economy and the bubble in the capital market intensifies the gap between the rich and the poor, the governments of all countries are trying to play the “anti-monopoly” card in a big way, so as to urge the scientific enterprises which have been expanding in scale during the epidemic to give up their profits and take the opportunity to reshape the market competition pattern. Global technology industry regulatory policy blowing a new wind, the industry competition environment will change, a global wealth redistribution will also be launched!
In response to the COVID-19 epidemic, which has lasted for nearly a year, governments around the world have strengthened their economies with more government bonds, ultra-low or even negative interest rates, and excessive printing of silver paper. This has flooded the market with liquidity, but the economic recovery has not yet been seen, and a large amount of hot money has poured into the capital market for profit. It coincided with the vigorous development of the new economy during the epidemic period. The sales of large science and technology enterprises increased greatly, and they became the target of hot money speculation. The market value of listed science and technology enterprises kept expanding, which became the driving force for the major stock markets and created considerable wealth. The problem is that only a few rich people can afford to participate in this capital appreciation feast. On the other hand, many enterprises fail and workers lose their jobs, which makes the poor poorer and the rich richer.
This year, Europe has launched antitrust investigations against U.S. tech giants like Amazon, while the U.S. government launched an antitrust lawsuit against Facebook in recent weeks. In the light of past antitrust actions, the technology giants targeted may face hefty fines in the future, or even be forced to “chop” their bones, spinning off different businesses and restricting their ability to make acquisitions.
In addition to Europe and the United States, the mainland recently held an economic conference to study the economic priorities for next year, and also proposed for the first time the two major ideas of anti-monopoly and preventing the disorderly expansion of capital. Soon after, three scientific enterprises were sentenced to administrative fines for violating the Anti-monopoly Law. In the wake of the suspension of Ant Group’s planned Listing in Hong Kong and Shanghai, Chinese authorities are apparently taking aggressive action against the monopoly of science and technology companies.
In the past, in the early stage of the development of science and technology industry, various countries gave preferential policies to cultivate enterprises. Can now acquire the giant companies are on the international science and technology, and the election after even wealthy, cross-industry monopoly trends adverse market fair competition, wealth is concentrated in a few chaebol, science and technology and in the long run under the monopoly capital, network is more evolved into data monopoly, threats, innovation and public safety, and had to face, the eyes a antitrust tsunami is sweeping the world!
As today’s technology giants have to make their profits a foregone conclusion, a wave of industrial revaluations is bound to hit the stock market. Money will continue to flow out of the highly valued technology sector to seek opportunities in traditional industries benefiting from the post-epidemic economic recovery.