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Axon, the taser-inventor, is ordered to break up into 2 companies

Snacks / Monday, January 06, 2020

"Protect Life"... That's the bold mission that greets you at Axon Enterprises. The inventor of the taser also makes body cameras and sells both to police with hopes that fewer uneccesary deaths happen. Now Axon finds itself in court for a different reason — its suing the government for demanding it break itself up.

  • Almost 2 years ago, Axon acquired Vievu, which also made body cameras for police officers.
  • 2 weeks ago (on Christmas Eve Eve), the Federal Trade Commission accused Axon of aggressively jacking up prices after it gained all that market power (AKA, acting like a monopoly).
  • The FTC's demanding Axon spin-off a "clone" company to compete against itself with body cameras.
  • Plus, it has to equip that company with its business secrets (this is a company's worst nightmare).

You don't like DMV requests... (this one's worse). The government's request is so soul-crushing for Axon that it's suing. The taser-creator believes this is government overreach and that there's still plenty of competition in body cameras. The CEO crafted a whole blog post about it, and the company outlined its side of the story.

The opposite of cuffing season... For years, it's been open-season for companies to mega-merge with each other, creating monopoly-ish dominated industries. If a Democrat becomes president, they may call for breakups in the industries below, and these breakups could follow the Axon playbook.

  • Tech: Facebook was allowed to acquire Instagram, the biggest threat to its dominance.
  • Airlines: After a jaw-dropping number of mergers, 4 major airlines now handle 75% of the air travel market.
  • TV & Movies: Disney has acquired Marvel, Star Wars, Pixar, and Fox.

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