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by bilbo0s
2662 days ago
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That wouldn't fly. A small company could release a best of breed product, and everyone could say it meets the definition of a monopoly. Unless you mean that the company would have to have a certain minimum marketshare AND ALSO would have to have best of breed product. (But even that would be problematic. We could likely get courts to go for something like 60%+, or even 50%+ with effort. But the courts are just gonna have a big problem with anything less than 50%.) |
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There are two considerations that contribute to the ultimate consumer ills:
(1) Do I, as a user, have robust choice of alternatives with equivalent functionality? (Absolute market share * , coupled with self-sustainability)
In the case of the Android / iOS duopoly, I do not.
(2) Is the owner of the product using its dominance in such a way that users of the product must contribute post-initial-sale revenue to that owner?
In the case of Android & iOS, I must.
Monopolies will arise naturally in technology. And they're healthy: FAANMG deliver amazing technologies.
But a single choice should not allow a company to passively leverage your demand ever after (e.g. by attracting suppliers, from whom they can then take a cut). This extends beyond marketplaces and app stores, but they're the current offenders.
Amazon's shopping marketplace is the trickiest example. Is Amazon a "significant market participant" in online sales? Yes. Does the Amazon seller marketplace allow Amazon to extract additional revenue from suppliers by gatekeeping access to Amazon users' demand? Yes.
In Amazon and Walmart's cases, they should probably have retail cleaved from their logistics chains.
* I'd put this number low enough that the total number of large competitors should be sufficient to promote true choice. By gut, 2 is probably too small, 3 seems dicey, so let's say 25%.