Citizen Kane: The Evils of Industrial Concentration

“Citizen Kane” explores the power of the press, manipulating public opinion, the quest for power through industry concentration, and whether money makes for happiness. This chapter explores the questions that the film poses for competition policy authorities today about the breadth with which we should interpret “abuses” of competition in the media. We first trace the evolving implementation of competition statutes in the US and Europe, noting that early judgements were written expansively, capturing more than purely economic issues. We present the landmark Alcoa case in more detail as an example of a decision encompassing political and even moral concerns. We then watch the pendulum swing toward narrower economic analysis before swinging back toward a wider interpretation today in the light of the role of very large enterprises in the digital economy: the GAFAM firms have not only become economically important, but the role of Facebook (Meta) in public opinion and the electoral process has been hotly debated. After reviewing this spectrum of approaches, we investigate how the economic analysis of competition policy can incorporate political aspects of the media on a more concrete level and within the scope of existing law. We leave the reader with some final questions on what, if anything, competition policy should do to prevent high concentration and potentially abusive conduct in media markets in the light of the recent rise of the digital giants.