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by n4r9
2085 days ago
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> So much modern antitrust action against tech companies is like pushing on a string: the reason these companies have power is because so many customers choose to use them That's not the only reason though? For example, Google "abused its market dominance by imposing a number of restrictive clauses in contracts with third-party websites which prevented Google's rivals from placing their search adverts on these websites" [0]. Facebook "has maintained its position by acquiring, copying or killing its competitors" [1]. The quoted statement seems to miss the point, which is that anti-competitive behaviour reduces the choice of the consumer. Of course they choose to use those services: they don't have much recourse to alternatives. [0] https://ec.europa.eu/commission/presscorner/detail/en/IP_19_... [1] https://www.cnbc.com/2020/10/06/house-antitrust-committee-fa... |
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As far as end-users are concerned, there absolutely are alternatives: Bing and DuckDuckGo.
It doesn’t really matter that they have low market share, there isn’t really a structural switching cost. You just have to enter a different URL in the address bar. Google obviously has the “best” results, but that doesn’t make it a monopoly. That just makes it the best out of a few options, and the market share largely reflects that.
Ben Thompson addresses that point in his article, too:
> Indeed, what makes Google’s contention that “The competition is only a click away” so infuriating is the fact it is true.
Google is arguably an anti-competitive monopsony, not a monopoly. Ben Thompson argues that our laws today don’t handle monopsonies well enough, owing to the consumer welfare standard.