Study warns: Large corporations use power to increase their profits and harm consumers and small businesses

Study warns: Large corporations use power to increase their profits and harm consumers and small businesses

According to a report by taz.de, a new study warns about the power of the world's largest corporations. The giant companies have been able to increase their monopoly-like position and are exploiting their market power to increase their profits at the expense of consumers and smaller companies. This is the result of a study published at the World Economic Forum in Davos.

The study shows that the 20 largest companies in the world were able to increase their price markups from an average of 40 to 50 percent. This means that small companies that produce a product for, for example, 10 euros can only sell it for 12.50 euros, while large corporations can offer it for 15 euros. This difference of 2.50 euros is called a “private tax” that consumers pay to the wealthy owners of large corporations.

The consequences for society and democracy are alarming. The companies examined spend 36.9 million euros annually on lobbying in the EU alone and thus influence decisions in politics, society and the economy. The rich and big corporations have too much power over society and are undermining democracy.

From a financial expert's perspective, the monopoly-like position of the world's largest corporations is worrying as it limits competition and raises prices for consumers. This can have long-term effects on the market and the financial industry. The demand for breaking up monopolies and stricter merger controls could lead to political measures that could influence and change the situation on the market in the long term. It is important that governments create legal frameworks to limit the power of large corporations and enable fair and transparent competition.