By contrast, any reduction in company size created by the enforcement of anti-trust laws will happen not because the larger company has been unsuccessful in providing value to consumers, but often in fact because they have been too successful in providing value to consumers, as has been the case, for example, with the various law suits against Microsoft on the basis that it has provided consumers with the convenience of a web browser built in to the operating system. And as that example illustrates, free competition will provide a competitive check anyway. Netscape which tried to fight Microsoft with the help of anti-trust authorities eventually died out, but for example Linux provides a competitive check on Microsoft when it comes to operating systems. Similarly Chrome and Mozilla Firefox have challenged Internet Explorer when it comes to web browsers.
Thus, anti-trust laws provide, at best, only small benefits in terms of increasing competitive pressures and even these benefits are counteracted by decreased company efficiency. By contrast, free competition will not only increase competitive pressures, these effects will be reinforced (and not counteracted) by increased company efficiency.
Globalization And Competition