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Regulation of the tech industry could end up helping the major players like Facebook and Google.
Analysts at Nomura argued in a recent research note that new legislation could simply make it harder for new companies to enter the market, further entrenching the current tech titans.
Facebook, meanwhile, will be able to absorb any regulatory headaches as a cost of doing business — reinforcing its dominance in the long run.

The growing calls for lawmakers to constrain the technology industry’s power may have an unintended consequence: It could actually strengthen the position of big tech companies like Facebook and Google.

In a research note published Wednesday, analysts at investment bank Nomura argued that increased regulation, rather than reining in the tech giants, could actually entrench their dominance. “We believe that regulation is likely to make platforms such as Facebook stronger and increase barriers to entry,” they wrote.

The argument: That the major players will, ultimately, be able to shoulder the burden of increased compliance as a cost of doing business — but for smaller players with less resources at their disposal, it could be prohibitively expensive.

Plus, the name recognition enjoyed by the likes of Facebook will come in handy as it attempts to get …read more

Source:: Businessinsider – Tech


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