3 ms·
> So offering a free product and adding value to it/offering it to your customers for free is now "anti-competitive"? Isn't this only beneficial to customers? W
by sergiosgc 7y ago
> So offering a free product and adding value to it/offering it to your customers for free is now "anti-competitive"? Isn't this only beneficial to customers? We should want more companies to do this.
The logic behind complement commoditization [1] is to kill your fine-grained competition, when you can recoup the commoditization costs in the larger product. It is something every company above a certain size does. There is no fundamental problem with the practice.
The commoditization practice is problematic when your company is so large it distorts the market. Hence the antitrust perspective of the article.
From a monopoly prevention perspective, Amazon should not be allowed to commoditize complements.
[1] https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/ https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/