David Balto, an antitrust attorney in DC who testified before the Senate Judiciary Committee on the Ticketmaster-Live Nation merger, wrote a guest op-ed for hypebot today. Balto frequently represents parties in government merger investigations and presents a very comprehensive view of the potential merger sitution. Among his discussion of how 'too good to be true' the merger seems for Ticketmaster and Live Nation, Balto also brings up an interesting point about how we can always learn from the past. It always comes to back to good ole' Karl Marx...
"Permitting a single firm to dominate any market, especially one where choice and innovation is so vital seems a large check to write for these limited benefits. History tells an important lesson. For years we had a single phone company – Ma Bell – and if one wanted to develop new products or innovate, it was only after Ma Bell gave her permission. As people used to say in those days you could get any phone you wanted, as long as it was “black.” Once the Justice Department broke up Ma Bell there was a flood of innovation and new product development. The simple message is that competition is essential to the greatest level of innovation and creativity."