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re: Anti-trust laws have been used for AT&T, MS, Std Oil. Why not Google, Facebook, etc.?

Posted on 10/30/17 at 11:30 pm to
Posted by AbuTheMonkey
Chicago, IL
Member since May 2014
8019 posts
Posted on 10/30/17 at 11:30 pm to
Anti-trust is a really fascinating subject, but a short answer to your question: a lot of times it won't come into play when the player at hand gained market share through what is essentially organic growth. In other words, the Googles and Facebooks of the world were revolutionary enough that they brought such immense value to the customer that the "cost" side didn't really matter.

Anti-trust really starts to come into play when you get into M&A (see: Cigna/Anthem or Staples/Office Depot) or outright anti-competitive maneuvers (what, as I recall, Standard was doing, though I am not super-familiar with the business case there). It could be argued that Facebook's acquisition of Instagram was an example, but that's really tough to do considering both services are free to the consumer. A lot of tech companies haven't hit that threshold yet (except Microsoft) because the what they're doing is so new. You have to define the market first before determining anti-trust/anti-competitive maneuvers.

It will be interesting to see what eventually happens because, just like in the Gilded Age (trains, logistics, petroleum, etc.), there are a hell of a lot of demand-side economies of scale (network effects) involved, and the big boys eventually tipped the scales and started doing all sorts of anti-competitive things. Amazon, arguably, might be doing some of that right now, but I don't know if Facebook and Google have approached that threshold yet.
Posted by rocket31
Member since Jan 2008
41819 posts
Posted on 10/30/17 at 11:31 pm to
quote:

AbuTheMonkey



Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 10/30/17 at 11:34 pm to
Of all goods ordered on-line, Amazon has 43% share.
Posted by slam627
Baton Rouge, LA
Member since Sep 2005
409 posts
Posted on 10/30/17 at 11:34 pm to
quote:

Anti-trust is a really fascinating subject, but a short answer to your question: a lot of times it won't come into play when the player at hand gained market share through what is essentially organic growth. In other words, the Googles and Facebooks of the world were revolutionary enough that they brought such immense value to the customer that the "cost" side didn't really matter.


Yep this exactly. (Whole post...it only copied the first paragraph for some reason.)
This post was edited on 10/30/17 at 11:36 pm
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 10/30/17 at 11:40 pm to
Abu - here's what Standard Oil Trust of NJ did -

a town has 3 service stations, selling gas for 30 cents. SO comes to town, and charges 26 cents. The 3 incumbents stations go out of business in the price war. SO ups the new rate to 34 cents. Rinse and repeat in town after town.

Anti-trust took the name from the term "Trust" in the SO name. The Sherman Act of 1890 law nowhere mentions "trust"
Posted by MrCarton
Paradise Valley, MT
Member since Dec 2009
20231 posts
Posted on 10/30/17 at 11:41 pm to
quote:

Anti-trust is a really fascinating subject, but a short answer to your question: a lot of times it won't come into play when the player at hand gained market share through what is essentially organic growth. In other words, the Googles and Facebooks of the world were revolutionary enough that they brought such immense value to the customer that the "cost" side didn't really matter.


This. I'm not even sure we want to regulate these guys. Why would we want to reduce the efficacy of these services? If people want more privacy, the market is open for people that are willing to create that product.

We all have some beef with these companies, but not enough to Signal to developers that we will support new players.

Now, broadcast media is something else entirely, and those advantages are not organic in any way.
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