> That keeps prices down and doesn't allow enough control. What resulted was repeated mergers, until most industries were dominated by a very few number of companies. This was promoted as desirable.
From the point of view of a single state, it can be desirable, provided said state keeps those companies on a tight leash to ensure the benefits are, to a high degree, captured for their own country. Internal competition eats into money for R&D and international competition. A big part of post-war Japan's success involved this sort of strategy: let a small number of large companies capture the domestic market, keep foreign competitors out, then set them loose on foreign markets while ensuring they cooperate where possible (R&D especially) for greater efficiency.
From the point of view of a single state, it can be desirable, provided said state keeps those companies on a tight leash to ensure the benefits are, to a high degree, captured for their own country. Internal competition eats into money for R&D and international competition. A big part of post-war Japan's success involved this sort of strategy: let a small number of large companies capture the domestic market, keep foreign competitors out, then set them loose on foreign markets while ensuring they cooperate where possible (R&D especially) for greater efficiency.