[runako]

The model being described is one where the company at the center of the network eventually captures ~100%+ of the profits deriving from the products that OEMs build on that platform. The reason is that the traits that define the product for the consumer are all controlled (or eventually co-opted) by the platform, leaving OEMs (what Google wanted Honda to be in this example) no room to differentiate. This leaves the OEMs with very little pricing power, which drives margins lower. Lower margins lead to less innovation. This is why it's hard to sustainably be an OEM in a market like this.

Examples:

-- Wintel --> Microsoft + Intel financially did much better financially than the legions of PC makers who designed, built, and sold products using the Wintel foundation

-- Android --> Similar, with Google reaping the profits.