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by SpaceX_Tech
3711 days ago
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You bring up the exact point that I was just thinking about, namely why market share is used as a criteria for defining whether certain behaviors fall into the anticompetitive realm but profit share isn’t. Apple taking 90% of overall worldwide smartphone profits may not be good for competition or the consumer, yet that isn’t regulated, not that I am suggesting that it should be. Apple obviously has enormous power due to its profitability that gives it a competitive advantage. I guess the thing I’m having a hard time wrapping my head around is exactly when normal competitive practices become anticompetitive, requiring legal intervention from regulators, and why these seem to center solely around market share and not other things like profits. |
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The law doesn't care about competitive advantage. It cares about making sure that your competitive dominance doesn't translate into dominating other markets.
For instance, Microsoft dominating personal OS market and making sure that their product stays on top is OK. Microsoft using their domination of that market to drive competition out of other markets is not.