Topic: Awareness in the fields of IT, Space, Computers, robotics, Nano-technology, biotechnology and issues relating to intellectual property rights.
5. What is an anti-trust law? The question today before the policymakers is how to regulate these Internet firms from abusing their monopoly power while at the same time encouraging the positive externalities and consumer surplus they create. Critically Analyse. (250 words)
Reference: The Hindu , Business – Standard
Why the question:
There are ongoing investigations worldwide, including in the European Union and the United States, on the abuse of monopolistic power by the Big Tech firms, especially Facebook and Google.
Key Demand of the question:
To write about the need to develop balance between checking monopolistic tendencies of internet giants and to create an ecosystem of positive externalities.
Directive:
Critically analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
Structure of the answer:
Introduction:
Begin by defining anti-trust law and the need for it.
Body:
In the first part, write about the limitations which the policy makers face while regulating the internet firms. Non-rival nature, jurisdictional issues, excludable nature etc.
Next, make a case for the regulation of the technological giants. Personalised advertisements, third-party sharing of the personal information, monopoly of some firms, Predatory pricing and erecting entry barriers for rivals etc.
Finally, write about the positive externalities created by these companies and the need to draw a balance between the both. Maps, Searches, Vaccine distributions and logistics etc. Suggest possible solutions like tax subsidy for their orderly behaviour in the marketplace, sharing of Non-Personal Data (NPD), fair payment to content creators etc.
Conclusion:
Conclude with a way forward.
