Monopoly in the Machines: How Antitrust Can Spur AI Innovation
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Maheswaran, Aarush
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Abstract
This paper examines the evolution of antitrust enforcement in the United States, focusing on the shift from structuralist approaches of enforcement to the new consumer welfare standard. The paper will examine the implications of this transformation for innovation and competition in emerging industries like artificial intelligence (AI). Through an analysis of historical case studies—including the breakups of Standard Oil and AT&T—this paper demonstrates how dismantling monopolies through a structuralist approach can spur innovation in the telecommunication and energy sectors. However, the adoption of the consumer welfare standard, championed by the Chicago School, has narrowed antitrust focus to price effects, overlooking structural harms in concentrated markets, and failing to provide similar outcomes in innovation. Drawing parallels to past antitrust actions, the paper argues for a return to structuralist principles to address monopolistic control in the AI sector. By fostering competitive markets, regulators can unlock technological advancements and ensure long-term industry dynamism.
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2025-09-30
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