Regulatory Capture Debate
Comments discuss how large corporations lobby for or benefit from regulations that impose high compliance costs on smaller competitors, entrenching their market dominance through regulatory capture.
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Government capture by big players who promote heavy regulation in order to eliminate smaller competition?
It’s not that in the absence of regulation, companies are going to be scrupulous, it’s that the cure is worse than the disease in the first place. After all, many regulations are actually lobbied for by the big corporations themselves, to prevent small companies from competiting with them.
Your answer sidesteps regulatory capture. These big companies wield massive power in Washington, don't you think any regulation and law that's actually passed will benefit them and prevent competition?
> Sounds like the kind of system small companies can't implement and large companies won't care to implement.Or the sort of thing bigger companies lobby for to make the entry barriers higher for small competition. Regulatory capture like this is why companies above a certain level of size/profit/other tend to swing in favour of regulation when they were not while initially “disrupting”.
Go after the specific companies and executives you believe are doing wrong. Blanket regulations raise costs for smaller competitors and end up entrenching giants like Meta, Google, and Apple because they can afford compliance while smaller competitors can’t. These rules are a big reason the largest firms are more dominant than ever and have become, effectively, monopolies in their markets. And the irony is that many of these regulations are influenced or supported by the big companies themselves
Guess what... The more regulation, the harder it is to compete against too-big-to-fail well stablished corporations.It's like no one here ever heard what regulatory capture or lobby is. https://en.wikipedia.org/wiki/Regulatory_captureGoogle is right in this case, but people will fail to recognize it, and ask for more state overreach that will end up making it harder to
Absolutely that's why we have to have regulations. The larger companies get the more they tend toward being monopolies and warping the idea of free markets.
I believe that two some extent these sort of regulations are lobbied for in the background by large corporations in order to make it harder for small business to enter the market. If they are going to get regulated anyway best make it to their own advantage!
It’s regulatory capture for large well resourced companies - keeps the smaller players off the field and unable to scale.
Exactly. Large companies love regulations when they affect everybody since they can easily abide the regulations while they help to destroy potential competitors.Keeping regulations focused on big players serves the dual purpose of focusing regulation where its affect will be most significant, while also ensuring it doesn't negatively affect the market. But yeah, like you're mentioning the big problem is that once companies reach a certain size they begin to develop the political co