Anti-Trust vs. Tech

John D. Rockefeller provides a lesson, but not the one you think.

by Rod D. Martin
September 3, 2013

It's pretty stupid.

Anti-trust law exists because capitalism is all about a level playing field.  We want people to have the chance to succeed.  We do not want people to do things that make it impossible for other people to succeed.  We can debate whether or not anti-trust law is the best way to achieve that.  But that's why it exists.

But when it comes to technology, monopoly has no meaning, at least not in the traditional sense.  If John D. Rockefeller scooped up 90% of the world's oil production, refining, transport and distribution capacity, his doing so created an enormous barrier to entry for others who wanted to compete in his business.  Not necessarily an insuperable one, but certainly an extremely difficult one, one adjudged by Rockefeller's contemporaries to be unjust and, ultimately, unlawful.

Yet even there, it's worth remembering that Rockefeller's primary business wasn't oil, but light: specifically, the kerosene that fueled kerosene lamps. …