Facebook made news this week by blocking U.S. President Donald Trump from posting to its platform. A seperate power struggle between government and Big Tech that will be far more consequential in the long term is unfolding in the background. The United States government seems prepared to rein in the social media giant and potentially break up the company.
In December 2020, the Federal Trade Commission (FTC) and attorneys general from 46 states launched antitrust proceedings. After months of theatrical congressional testimony by various tech CEOs, this development represents an escalation that could ultimately determine the balance of power between the U.S. government and Silicon Valley.
Antitrust is the American legal framework for competition law.
In the late 1800s, Standard Oil dominated the American oil refinery market and its chairman, John D. Rockefeller, was thought to have become the richest man who ever lived. In 1890, Congress passed the Sherman Antitrust Act, which was used to break up Standard Oil into smaller companies.
In later years, the market power of AT&T and Microsoft were similarly reined in by the U.S. government.
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