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McDonald's isn't running an ad agency alongside its main business. Ads are not a product that they sell to the public. Facebook sells ads to the public, but not

McDonald's isn't running an ad agency alongside its main business. Ads are not a product that they sell to the public. Facebook sells ads to the public, but not to their competitors. This is almost certainly illegal under the Sherman Antitrust Act of 1890

lucb1e 7y ago
Hmm, I guess I see what you mean. To me the ads feel like an integral part of it, like the cash/card registers in a McDonald's, but when you point it out I see it can be a separate component. I suppose it would be like McDonald's manufacturing their own registers and refusing to sell them to competitors. There are a lot of register manufacturers, and a lot of other ad platforms, but indeed on other ad platforms you don't reach the Facebook users that you want to reach, so perhaps there isn't really any other option than to run Facebook ads. I guess I also saw it differently because it feels like a free speech argument: why does FB have to give competitors a voice? But it's not about having to give someone a voice because they claim it should be a free (as in freedom) platform, it's for maintaining competition. I think I've changed my mind. As you see I'm still thinking this through (out loud) but I suppose it should indeed be different entities, even if the to-be-separated ad business is selling "real estate" on Facebook.
cma 7y ago
McDonalds does actually do sponsored ad deals on its meals, with tie ins to major brands. If I remember right it is legal for e.g. CBS to not run ads for ABC programs.
kemitche 7y ago
It's been a long time since I've watched network TV, but I can't recall EVER seeing ads for a TV show on a competitor's network.
- VikingCoder 7y ago
  Hrmmm - well, I remember seeing HBO ads on all the networks. But your basic point is valid.
  - justanotherhn 7y ago
    Did people forget the most recent case of this? "Disney bans Netflix ads from all of its TV channels except ESPN". [0] Disney banned Netflix ads on its streaming service. How is that not the same thing? The monopoly argument crumbles when you realise how big Disney is compared to Netflix. [0] https://www.cnbc.com/2019/10/04/disney-to-ban-netflix-ads-from-all-of-its-tv-services-except-espn-wsj.html https://www.cnbc.com/2019/10/04/disney-to-ban-netflix-ads-fr...

lucb1e 7y ago

Hmm, I guess I see what you mean. To me the ads feel like an integral part of it, like the cash/card registers in a McDonald's, but when you point it out I see it can be a separate component. I suppose it would be like McDonald's manufacturing their own registers and refusing to sell them to competitors. There are a lot of register manufacturers, and a lot of other ad platforms, but indeed on other ad platforms you don't reach the Facebook users that you want to reach, so perhaps there isn't really any other option than to run Facebook ads. I guess I also saw it differently because it feels like a free speech argument: why does FB have to give competitors a voice? But it's not about having to give someone a voice because they claim it should be a free (as in freedom) platform, it's for maintaining competition. I think I've changed my mind. As you see I'm still thinking this through (out loud) but I suppose it should indeed be different entities, even if the to-be-separated ad business is selling "real estate" on Facebook.

cma 7y ago

McDonalds does actually do sponsored ad deals on its meals, with tie ins to major brands. If I remember right it is legal for e.g. CBS to not run ads for ABC programs.

kemitche 7y ago

It's been a long time since I've watched network TV, but I can't recall EVER seeing ads for a TV show on a competitor's network.

VikingCoder 7y ago
Hrmmm - well, I remember seeing HBO ads on all the networks. But your basic point is valid.
- justanotherhn 7y ago
  Did people forget the most recent case of this? "Disney bans Netflix ads from all of its TV channels except ESPN". [0] Disney banned Netflix ads on its streaming service. How is that not the same thing? The monopoly argument crumbles when you realise how big Disney is compared to Netflix. [0] https://www.cnbc.com/2019/10/04/disney-to-ban-netflix-ads-from-all-of-its-tv-services-except-espn-wsj.html https://www.cnbc.com/2019/10/04/disney-to-ban-netflix-ads-fr...