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by mrep
2865 days ago
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This is why I think we need a new way of identifying market abuse because you can make anyone a/not a monopoly based on what definition you use. IOS device software distribution -> apple has a monopoly High end phones -> apple probably has a monopoly Total revenue of phones sold -> apple probably has a monopoly Number of phones (in use?) by OS -> android has a monopoly Number of computers by OS -> nobody has a monopoly http://gs.statcounter.com/os-market-share |
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Which is why it matters if there are close substitutes or not.
> IOS device software distribution -> apple has a monopoly
There are no good substitutes for this. There is no viable alternative for distributing apps to the people with iOS devices. Distributing apps to people with Android devices isn't a substitute because they're different people, in the same way that distribution in the Northeast is not a substitute for distribution in the Southwest.
> High end phones -> apple probably has a monopoly
There are high end Android phones that are probably adequate substitutes. But if there weren't (or you think they aren't adequate substitutes) then sure.
> Total revenue of phones sold -> apple probably has a monopoly
The market you've specified is "phones" which is obviously not something Apple has a monopoly on. Whole Foods doesn't have a monopoly on food just because they have high margins. There are tons of non-Apple phones if all you need to satisfy to be part of the market is to be a phone.
It may even be a weak market definition because it's too broad -- a feature phone isn't a very good substitute for an iPhone. A better market definition might be smartphones, but even then they still don't have a monopoly. It's not about revenue or margins, it's a question of whether the consumer has a reasonable alternative supplier of something sufficiently equivalent.
> Number of phones (in use?) by OS -> android has a monopoly
The market in that case is would be "phone OS" but then Android has the obvious competition from iOS. Also, Android isn't a company, it's a product. It's nearly impossible for a piece of open source software to have "a monopoly" when literally everyone is allowed to supply it and anyone can do so at trivial cost. All the Android phone manufacturers are each independent suppliers of it.
> Number of computers by OS -> nobody has a monopoly
The market in that case is "computer OS" which is a poor market definition because desktop and phone operating systems are poor substitutes for each other.