>>> Standard Oil
And how did you come up with that example?
In 1880 when the oil industry was in its infancy, Standard Oil controlled 90% of the country's oil production. And I will agree that some of their business practices were questionable or unethical, but not necessarily illegal. In 1911 when the Government broke up Standard Oil, their control had dropped down to 65%. And how did that happen?
To quote myself,
"competitors would rush to invade the industry with alternative products that would capture market share."
In this case it was not even alternative products. You may have heard of a couple of those competitors: Gulf Oil and Texaco, among many others.
Often huge corporations become big because they are efficient, and can deliver products cheaper than any other competitor. If you break them up, inefficiencies among the remnants can drive up prices to consumers. Is that what we want?
Remember, prices are determined by supply and demand. If the price is too high demand drops and so do profits.
Anti-trust, anti-monopoly laws inhibit innovation. Lets suppose that Standard Oil had been able to become a true monopoly, and no one could enter the oil industry. Would others have have developed great alternative fuels nearly 100 years ago to compete with oil? Who knows, maybe we would have avoided all of our Carbon Flame War debates, because the world would be using some other fuel that is more efficient and less polluting. But since it became easier for many players to enter the oil business, there was no need to develop alternatives. Heck, we might be driving around in cars powered by static electricity today :)
Okay, last post of the week. I have to pack up and head out for this weekend's adventure.