The Rise of Tech Giants May Be Bad News for the Economy

The dominance of a few firms risks harming productivity and growth, study finds

By Alessandro Speciale –

When it comes to competition, the Banque de France is here to tell you your economics textbook was right.

Tech giants like Facebook and Amazon are the tip of the iceberg of a trend toward market concentration. That’s good for profits, but a new study says it also risks harming productivity and growth potential in the long run.

According to Sophie Guilloux-Nefussi, an economist with France’s central bank, the market share of the eight largest companies rose in more than 60 percent of the sectors of U.S. between 2002 and 2012.

Source: The Rise of Tech Giants May Be Bad News for the Economy – Bloomberg