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More importantly, when you have a giant company with a monopoly on something, they don't have to compete with you, they can instead just buy you up.
by onychomys 8y ago
More importantly, when you have a giant company with a monopoly on something, they don't have to compete with you, they can instead just buy you up.
- mrguyorama 8y agoWhich is what the company behind lenscrafters did. IIRC, Oakley tried to compete fairly, and not play their monopoly/collusion game, so Luxottica threatened to pull from any stores that carried Oakley. When Oakley inevitably lost a huge amount of sales and the companies value tanked, Luxottica bought them. Nintendo did the same thing, minus the buyout, in the eighties when video game manufacturers tried to subvert Nintendo's control in that market. You don't need a full fledged monopoly to upset market forces. Even the existence of a single large entity that can make unified decisions destroy a healthy market