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Which Facebook monopoly are you referencing? None of their businesses seem to be a monopoly.

Ben Thompson explained why it’s not a monopoly well:

https://stratechery.com/2021/regulators-and-reality/



For the love of god, having a monopoly is not required to be guilty of anti-competitive behavior. Every time the topic comes up somebody says "but FB/whoever doesn't own the entire market so everything is fine", as if it absolves FB from acting like complete and utter pieces of shit socially and in business. News flash, it doesn't fucking matter. They don't need a de facto monopoly to have an adverse effect on competition or their consumers/users.


Before: FB doesn't own the market, so this acquisition is all good.

After: FB now owns the market; how did we let them become a monopoly!?


(The review looks at the affect of the acquisition on market not just if they own the market already)

Before: FB doesn't own the market.

During review: FB would (/not) own the market with this acquisition. So we should deny (/approve) the acquisition.

After: Look the outcome we expected!

Much later: wow things change over time!


> For the love of god, having a monopoly is not required to be guilty of anti-competitive behavior.

The original comment said monopoly, not anti competitive behavior. They are different, you're right.

> They don't need a de facto monopoly to have an adverse effect on competition or their consumers/users.

True. That said, i'd argue facebook actually has a positive affect on competition in their space. They're regularly rolling out new features and making changes due to competitive forces, meaning others compete on better experience rather than just different.

Eg. FB copied snapchat stories... and snapchat had nothing to stay relevent. FB copied tiktok format and TT is stronger than ever, since TT's advantage wasn't the format but the algorithm.


This argument is completely without merit.

Facebook makes money from mining the data you generate while using their platform.

If you're not using _their_ platform, you're not making _them_ money.

To combat WhatsApp and Instagram, Facebook tried the Facebook App. It didn't work (people still used WhatsApp and Instagram a great deal more than the facebook app). Instead of figuring out why, they just bought the platforms out and forcefully integrated them.

Which clearly violates the Clayton Act.

"But why didn't the FTC intervene" because old people don't understand tech and new things will always confuddle the outgoing gatekeepers.

Those purchases gave them data they previously didn't have access to. Which gave them MUCH more control in the advertising market.

I expect boomers and the like to not understand this, but to hear "facebook isn't a monopoly" on HN is fascinating.

How else do you describe the centralisation of the internet via Google and Facebook? Innovation? Really? Despite all the evidence in leaks and statements?


Can you explain why you think these integrations violate the Clayton act (I.e are unfair competition)?

Google exists and Amazon and Microsoft have growing advertising businesses. All of which have vast throves of integrated consumer data.


IANAL, but

https://en.wikipedia.org/wiki/Clayton_Antitrust_Act_of_1914

> There are 4 sections of the bill that proposed substantive changes in the antitrust laws by way of supplementing the Sherman Antitrust Act of 1890:

> mergers and acquisitions where the effect may substantially lessen competition (Act Section 7, codified at 15 U.S.C. § 18) or where the voting securities and assets threshold is met (Act Section 7a, codified at 15 U.S.C. § 18a);


They bought instagram long before they were a proven success. They were instrumental in making instagram a successful business. its not clear that insta would be what it is today without fb.

> But why didn't the FTC intervene

The US did review the case, and determine that insta was not a risk. Its easy in hindsight to say that its obviously a miss, but again, we don't actually know that insta would be big today if it wasn't for the fb resources and industry knowledge they brought.

> Which gave them MUCH more control in the advertising market.

What market share do they have in advertising? Like a number, because between Google, and Amazon, and all the other major networks (oracle, adobe, msft, apple, etc) i can't imagine its so high they can exert a dominating force.

> I expect boomers and the like to not understand this

I'm young and love to disparage old people and the internet, but really age is not an indicator of people understanding things, even the internet. Plenty of boomers "get it", and maybe get business more than some hn commenters... ;)

> but to hear "facebook isn't a monopoly" on HN is fascinating

Review the source linked. It explains clearly that fb doesn't have a dominant market share. Thats what a monopoly is. Its a very HN source.

> How else do you describe the centralisation of the internet via Google and Facebook? Innovation? Really? Despite all the evidence in leaks and statements?

1 ) this is quite an emotional response, that does nothing for the legal basis of a monopoly. Emotional responses are fine, centralization can be scary, but its not a legal response.

2) I wouldn't call it innovation per se, nor would i call it good, per se. BUT i wouldn't call it monopoly either.

aside, i wonder if the internet is really "centralizing" resulting in fewer locations online, or if some locations have just grown so much bigger than others - are there fewer nodes in the graph over time, or did some nodes just grow a lot more.

--- --- ---

Also, not to nit-pick but...

1. Whats app does not collect much user data, so it doesn't really help the "we make money off your data" argument.

2. Using a fb site does not mean you can't use other social networks. They don't compete in a "rivalrous" way - meaning using insta doesn't stop you from using tikTok or youtube or any other network in addition to fb.


So, if Ben Thompson says that FB is not a monopoly we are all good and we can cut on all these pesky regulators.


> if Ben Thompson says that FB is not a monopoly

Well, he was referencing a bunch of sources, including courts rejecting those pesky regulators cases. I could have cited the courts, but BT's writing is a lot easier to read and cites the courts.

> we are all good and we can cut on all these pesky regulators.

Who's case was thrown out (in the US) for not having any basis for their claim. Its basically the same claim as all HN. Its big, so its a monopoly. Except there is no fact basis for it. They don't have a dominant market share.

> the FTC has failed to plead enough facts to plausibly establish a necessary element of all of its Section 2 claims — namely, that Facebook has monopoly power in the market for Personal Social Networking (PSN) Services. The Complaint contains nothing on that score save the naked allegation that the company has had and still has a “dominant share of th[at] market (in excess of 60%).”

https://storage.courtlistener.com/recap/gov.uscourts.dcd.224...


This is exactly one court case. Let's see what will happens with the investigations that started not because there were elections coming in the US.




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