Antitrust’s Blind Spots: When Markets Fix Problems Faster Than Regulators

One of the enduring ironies of antitrust law is that governments often step in to solve perceived problems that market forces are already addressing. A prime example: the breakup of AT&T in 1984 didn’t bring about the demise of the Bell telephone monopoly. The real shift came from new fiber optic networks—launched around 1984—and the development of cellular networks. Now, we see the same pattern with Google. After years of litigation, the Department of Justice (DOJ) secured a conviction alleging that Google illegally maintained a monopoly in general search. Simultaneously, another DOJ trial targeting Google’s online advertising role is getting underway. However, both cases miss a crucial point: Market forces are already dismantling whatever dominance Google may have had.