The term tipping is common in antitrust and refers to the point at which a product has accumulated enough users or consumers that it gets launched towards a monopoly status. When applied to regulations, tipping point refers to a point in time, at which gradual regulatory costs eventually reach the point where it is no longer profitable or worthwhile for businesses to operate. Recent reactions by tech companies, following regulatory developments, suggest we are nearing such a tipping point.
Before proponents of regulations cheer this development, it is worth considering whether Americans would truly be better off without the companies that allow us to stay connected with loved ones and bring new levels of convenience to tasks as broad as going to the airport or shopping.
The flaws of large tech companies have been well publicized, and concerns reach across the political spectrum. Many individuals on both sides of the aisle are unhappy over content moderation and the implications of such influence.
These concerns have almost certainly contributed to the loss of public confidence in some of the companies. Overall, support for additional regulation has declined but remains significant with 44 percent of respondents supporting greater regulation, according to 2022 Pew Research polling.
Read the full Free the People article here.
Tirzah Duren is the Vice President of Policy and Research at the American Consumer Institute, a nonprofit educational and research organization. You can follow her on Twitter @ConsumerPal.