Seminar by Prof. P L Beena

Topic: Imperatives of regulating the Knowledge and Technology driven Industries in India

Abstract: 

Antitrust policy analysis especially after mid-1990 is dominated by the post-Chicago school methodologies instead of the structure-conduct-performance analysis proposed by Harvard school (Budzinski,2008). With the rising regulatory challenges facing the technology markets, there has been a growing debate in recent years on what should be the core focus of antitrust regulation which could facilitate healthy competition, improve the welfare of consumers and workers and spur economic growth (Shapiro 2019; Khan 2017;2019). In some jurisdictions, including the US, the focus has been on consumer welfare in line with the Chicago school of antitrust analysis with its less interventionist approach. This makes regulating the high technology market even more challenging where the ‘consumers’ do not directly pay a price for using the platforms (Khan, 2017;2018;2019;). Antitrust issues related to innovation and competition have attracted scholarly attention especially after the emergence of the new digital economy, which is controlled by the US and China. US and China account for 50 percent of the world’s hyperscale data centres, 70 per cent of the world’s top AI researchers, the highest rates of 5G adoption, 94 per cent of all funding of AI start-ups in the past five years and almost 90 percent of the market capitalization (UNCTAD,2021). The world’s largest digital platforms firms such as Apple, Microsoft, Amazon, Alphabet (Google), Facebook, Tencent and Alibaba have been able to strengthen their dominant position in the digitalised economy and control the global data value chain (UNCTAD, 2021). Given this context, this study is devoted to analyse the pattern of mergers and acquisitions in the technology and knowledge driven sectors during 2004 to 2022 and its impact on the market structure & performance of acquiring firms. The study further examines the effect of M&As on innovation efforts & competition and the antitrust implications under the new IPR regime.