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Silicon Valley leaders prepare for their biggest challenge ever


2021 presents a more accurate picture of the outlook for major technology companies a year after they flourish.

After the boom of the major tech giants in Seattle and Silicon Valley in 2020, they will be able to think of an extraordinary year, said author Robin Baganmenta in his report published in the British newspaper Telegraph.

The share prices of the world's most valuable technology companies fluctuated before rising to higher levels than ever before. Shares of Google's alphabet rose 27% in 2020, with amazon shares up 70% to more than $1.6 trillion.

The author noted that with consumers in their homes, technology companies have reaped the benefits of economic activity thanks to the sale of countless personal devices, applications and e-commerce platforms on which we depend, and those profits are likely to continue to flow.

In contrast, silicon valley's big beasts face the biggest challenge in their history, a regulatory backlash that would pose an existential threat to the industry, appears in antitrust lawsuits.

Breaking up major technology companies

From Washington, D.C., to Brussels, many lawyers and lawmakers expressed their displeasure with the growing power and wealth of technology companies, their concern about the impact on competition as well as its devastating impact on our cities and mental health. Last month, dozens of U.S. states filed their first antitrust lawsuit against Google's primary search engine.

Another state, led by 10 Republican-backed states, claimed that Google had used its control over the digital advertising supply chain to create a monopoly. The Justice Department filed a separate complaint alleging that the company had created a network of partnerships designed to prevent competitors from securing an audience on smartphone devices.

Facebook has come under heavy criticism after the U.S. Federal Trade Commission and 46 states filed a lawsuit accusing it of a "course of anti-competitive behavior," including using its dominance to eliminate competitors who threatened its monopoly power.

With growing speculation that these companies could be dismantled, the industry is now trapped in the biggest series of antitrust measures since at least the 1990s, when Microsoft faced a similar attack.

Antitrust claims against Google

Not just the United States, the European Commission has unveiled its digital services laws and digital markets. The United Kingdom has announced its proposed online damage legislation, designed to create a "new era of accountability" for social media sites.

The way big technology companies respond to this inflated threat will be the biggest event in the business world of 2021. It will shape the future of the world's largest companies and will have wide-ranging implications for consumers. Google, Facebook and other major technology companies should adopt a more pragmatic approach, seek a settlement, and agree to separate partnerships in a preventive manner in exchange for litigation.
Corridors of power

If we are to be guided by history, the dismantling of monopolies can be beneficial to the important. When the U.S. government divided AT&T into eight companies in 1982 after a long battle against monopoly, the group was valued at $47.5 billion, and a decade later the market value of those companies rose to $180 billion.

Not every technology pole may be willing to consider this approach. On the other hand, they should learn from the experiences of their predecessors and realize that the antitrust threat is unlikely to be interrupted any time soon, which will benefit the contributors.

Source: Websites