While Facebook and Google are in powerful positions in the marketplace and in apparent power, only Facebook has the uniqueness of its hold on the public. In real terms, Facebook is a monopoly like no other. What it has are your family and friends. You are there because they are there. They are there because you are there. The monopoly of everybody. On November 28th, 2012, Mike Elgan wrote in Datamation:
Why This Should Be an Antitrust Issue
The highest purpose of anti-trust and consumer protection laws is to, well, protect consumers.
Any monopoly is in a position to unfairly exclude competition, abuse customers without losing them, fix prices, engage in predatory pricing, or do other things that change the market in a way that restricts free trade and consumer choice.
The definition of a monopoly, and the whole body of legal work around anti-trust and competition laws, comes from the old world of old-school companies making physical products or offering straight-forward services.
We live in a new world now, and companies like Facebook are benefiting from the obsolescence of our laws.
This is where Facebook will eventually wind up, defending against anti-trust charges.
As Written By Anita Balakrishnan for CNBC:
- Social Capital CEO Chamath Palihapitiya says Facebook and Google are like “surveillance states” and are inviting a government crackdown.
- The former Facebook executive is bullish on Amazon, and thinks it will have a longer runway before the government tries to intervene.
Even though he was once an executive at Facebook, Chamath Palihapitiya, CEO of Social Capital Hedosophia Holdings, favors investing in Amazon instead, he told CNBC’s “Fast Money: Halftime Report” on Thursday.
President Donald Trump has been a critic of Amazon, tweeting his disdain for coverage from The Washington Post, which is a personal holding of Amazon CEO Jeff Bezos. But Palihapitiya said he thinks that Facebook and Google face more regulatory risk, given the many retailers that compete with Amazon.
“Amazon is a microscopic portion of global consumption today, so ultimately I think it has more room to grow before it invites regulatory overview,” Palihapitiya said. “On the other hand, Facebook and Google effectively are surveillance states. And they have so much personal, private information about so many citizens of so many countries.”
“It’s already beginning,” Palihapitiya said. “Because it’s part and parcel to them realizing that there’s too much power……..
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