The FCC thinks it has a problem with the pending T-Mobile-Sprint merger, worrying that such a thing would anti-competitive and lead to rising prices for consumers.  The WSJ‘s editorial board demurs from the FCC’s attitude.

But greater economies of scale in industries with high fixed costs can create efficiencies that benefit consumers. DOJ’s position should evolve as markets and technology have.

Indeed, and the FCC’s regulators presently are illustrating another problem with government intervention in the market, whether by Republican or Progressive-Democrat regulators. The FCC’s regulators’ worries are purely speculative, not realized fact.

It’s also true that the converse—a particular merger leading to increased competition and lower prices—is just as speculative.

That’s the problem, though. Our anti-trust laws bar abuse of monopoly power, not the possession of it, and those laws have the mechanisms for enforcing and taking corrective, including punitive, action against companies that do abuse their monopoly power.

The right answer here is for government to get out of the way of a purely business decision made in a free market, even though it should watch carefully to ensure that abuse does not occur or is corrected should it occur.  Let the market do the speculation in the meantime.

Speculative intervention in the present case is solely in the mindsets of regulators.

Leave a Reply

Your email address will not be published. Required fields are marked *