This article in Business Week addresses the rumor that Google is in talks to buy Twitter. Although they said that this probably isn’t true right now, the article talks about what would come of these two internet super companies did in fact merge. Google is a very popular search engine but they haven’t been able to tap into the social networking aspect of the internet. On the other hand, Twitter hasn’t been able to find a way to make money off of their popularity. I feel like there are always rumors about successful companies merging, but few ever turn out to be true.

The problem with big companies like Google and Twitter buying each other out is that there is less competition in the market. Ever since the Telecommunications Act of 1996, With less market competition, costs will go up and choices and options will go down. An example of this would be facebook. The site recently changed it’s layout and the homepage of the website. Many people voiced dislike about the changes, but since there aren’t any other sites with the popularity facebook, there’s nowhere for unhappy consumers to turn to. Another example of this would be cable companies in local cities. When there’s only one provider, they can charge whatever prices they want and show whatever content they choose.