I actually thought of the 'scam' you described about three seconds after I pressed send. But unless stages of production were fully automated you would at least end up creating employment when splitting up the companies. I suppose independent monitoring of company relationships could prevent some of it, but as we know watchdogs are usually useless and merely token gestures to appease the populace - "Oh, we don't need to watch out for the phone companies screwing us, we have OFFTEL!". Bollocks! Everyone has to watch these bastards. You can fool some of the people etc ...
You could of course eliminate profit altogether :-)
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