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Defining Monopoly Markets – Axios for Apple, Facebook and Google



News: The US Supreme Court decided on Monday that the App Store users' classroom suit with monopolistic behavior could move forward. they are so important to antitrust.

  • Say you run a single restaurant in town – do you have a monopoly?
  • If the market is defined as "restaurants" or "outdoor dining" then you will do it.
  • If the market is defined as "food" or "food", well, people can buy food and cook, right?
  • One way you are a monopolist ̵
    1; the second, you're not

In the App Store suit users charge Apple to force developers to sell iPhone apps only through the Apple store

  • Apple argued that, among other things, users can access software and services through web browsers on their phones and that most of the apps available from the App Store are free to download.

If you define the market as "iPhone apps", Apple looks like a monopoly – it keeps you in full control of the space.

  • You cannot place an application without storing applications on iPhone without "breaking the link", operating system handling in a way that violates Apple's terms and conditions and voids the warranty.

If you instead define the market as, say, "smartphone" " you get a different result.

  • It's because users can buy Android phones and access a very different application universe.

The same principles apply in the debate on the disintegration of Facebook .

  • In his recent essay claiming that Facebook has become too strong, co-founder Chris Hughes has claimed that society "is powerful monopoly, obscures all competitors from the category of social networks.
  • "Social Networking Category" is a way to define this market that most easily casts Facebook as a monopoly.
  • But if you call it "messaging" then Apple, Snapchat and mobile phone providers look like cardinal competitors.

Similarly, in many countries, Google seems to have a monopoly on the search market. But if you define the market instead of "online information," this case is much more miserable.

  • Google's Android practices are also subject to antitrust control. Last year, an EU decision that penalized Google for practices related to the Android Play business said Google has a monopoly in this market.

Our Thought Bubble : In technology, market definitions are unusually fluid because hardware is rapidly evolving and software is infinitely ductile.

  • Lawsuits and antitrust cases are moving slowly and at a time when they can be judged, markets tend to mutate
  • But the power of technical giants has grown so vastly that many critics see antitrust resources as the only way to balance the game industry.

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