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by acrefoot 2123 days ago
Natural monopolies are ones where the barrier to entry to provide a service is high. Like a nuclear power company. This fragmentation isn't really in the same category, since clearly many companies have the ability to create a music streaming service or game store with some form of content.
3 comments

Natural monopolies are ones where having multiple competing services doesn't make sense. Nuclear power isn't, to the extend NPPs make sense it makes sense to have multiple.
Network effects can be and in this case very much are a barrier to entry.
But how many can create a hardware platform like an iphone?