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> Question is, does it incentivize these companies to reduce their market share by different means - going low on a certain marketing campaign, release a subpar product, or make choices

I dont think anybody expects them to reduce their market share. Thats what competition is for.




In the hypothetical that the OP shared, they mentioned scrutiny for firms above a certain market share.


Yes, because you can't abuse (substantial) market share unless you have it.

It's like having a gun. Perfectly fine unless you go around threatening people with it.




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