News on Medial

How Big Tech sabotages rival startups — from the inside

Business InsiderBusiness Insider · 8m
How Big Tech sabotages rival startups — from the inside

Big tech giants like Alphabet, Amazon, Apple, Meta, and Microsoft are using a practice called "co-opting disruption" to maintain their dominance and crush potential competition, according to a new paper by scholars Mark Lemley and Matt Wansley. Instead of acquiring startups, the tech giants are strategically investing in and supporting promising smaller companies, then steering them away from truly disruptive innovation and into projects that reinforce the status quo. This approach allows the tech giants to protect their own interests and slow down the pace of innovation by eliminating potential challengers. The paper suggests that regulators need to recognize and address this new form of anticompetitive behavior in order to promote a more competitive and innovative tech industry.

Comments

Download the medial app to read full posts, comements and news.