Will Trust Scandals Break Up the Tech Sector?

Google parent company Alphabet is the at the epicentre of global antitrust scrutiny, with investigations in Europe, Israel, South Korea, India and Japan

Sustainalytics 12 April, 2018 | 11:39AM

The software and services industry, inclusive of companies providing enterprise and consumer applications, search engines, e-commerce and internet-based offerings, relies heavily on establishing digital ecosystems and selling cloud-based software and digital ads.

Using ideas originally hatched in garages, major players like Google's parent company Alphabet (GOOGL), Facebook (FB) and Microsoft (MSFT) have leveraged platform scale to generate extraordinary growth and now stand as lynchpins in the global economy.

Global IT spending is expected to hit $3.7 trillion in 2018, and the software and services industry will be the major beneficiary. However, as dominant industry players consolidate market power, exposure to anti-competitive concerns threaten to bring down a regulatory hammer amid growing interest in the idea that software and services giants may need to be broken up.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alphabet Inc A1,529.95 USD-2.41
Facebook Inc A261.40 USD-1.70

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