Anti-Competitive a Hard Argument to Make Against Large Internet Platforms

Recent regulatory and legislative initiatives have targeted large Internet companies for potentially anti-competitive behavior. Research Analyst Tom DeLong discusses the potential long-term range of outcomes for these companies’ financial performance, and the implications for investors.

Key Takeaways

  • Several regulatory and legislative initiatives have targeted large Internet companies for potentially anti-competitive behavior.
  • Based on the factors currently used to gauge the competitive health of an industry, we believe that these companies should be able to successfully argue their case.
  • Still, as the process unfolds, negative headlines could cause Internet companies to be less aggressive in expanding market share and acquiring innovative competitors. Over the long term, this could widen the potential range of outcomes for these companies’ financial performance.