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> That's because it would still be true, because the market for apps for a particular type of phone that has its own type of apps is a separate market no matter
by nodamage 6y ago
> That's because it would still be true, because the market for apps for a particular type of phone that has its own type of apps is a separate market no matter what percentage of the market for phones that type of phone represents.
That's incredibly tautological. Walmart has a monopoly on the distribution of products sold in Walmarts. Nintendo has a monopoly on the distribution of games on Nintendo products. Visa has a monopoly on Visa transactions.
These are not meaningful distinctions: the consumer has a choice not to shop at Walmart, not to buy a Nintendo product, and not to use a Visa card. Similarly, the consumer has a choice not to buy an Apple product.
The types of apps available on a particular phone are part of the purchasing decision of which phone to buy, just like which games are available for a gaming console might influence which console you buy.
- acituan 6y ago> These are not meaningful distinctions: the consumer has a choice not to shop at Walmart, not to buy a Nintendo product, and not to use a Visa card. Similarly, the consumer has a choice not to buy an Apple product. A better analogy would be having a person with you all the time and told you what products you can buy or not buy from any of these stores and took a 30% either from you or the producers everytime you did. Walmart is only a monopoly on walmart branded products sold on Walmart, for everything else you have the option to buy them somewhere else. Apple has monopoly on every single app sold on their app store, you can't buy them somewhere else without depending on the developer making a different version and forgoing the iPhone you had already bought.
- nodamage 6y agoI was not actually trying to make an analogy here to the overall situation, only pointing out the absurdity of determining whether a company has a monopoly based on arbitrarily restricting the definition of the market. That is not how the courts determine those things. They look at factors like market share and whether or not the consumer has access to alternative products. > Apple has monopoly on every single app sold on their app store, you can't buy them somewhere else without depending on the developer making a different version and forgoing the iPhone you had already bought. As I said elsewhere, both the hardware and software are part of the purchasing decision you make when you buy a phone. If you don't like the software, you can choose to buy a different phone.
- AnthonyMouse 6y ago> That's incredibly tautological. It's not, because markets are defined by economics and not brands. People keep asserting over and over again that a brand is not a market, but nobody is claiming that, they just happen to coincide in this case. What defines a market is whether there are substitutes. If you have an iPhone and need an app, and you could install an Android app on your iPhone, then iPhone apps and Android apps would be the same market. But since you can't, they're not. Notice how this doesn't apply to random Walmart products. There may be a Walmart brand of motor oil that only Walmart sells, but you can go to Amazon and buy a different brand of motor oil and still use it in the same car. The relevant market is "motor oil of the spec that works with your car" rather than "Walmart motor oil" and Walmart doesn't have a monopoly on that. But for the market "apps of the spec that works with your iPhone" you can only buy through Apple, so they do have a monopoly.
- nodamage 6y ago"If you have an Xbox and need a game, and you could install a Nintendo game on your Xbox, then Xbox games and Nintendo games would be the same market. But since you can't, they're not." Sorry, that makes no sense. Microsoft, Sony, and Nintendo all compete in the market of video games. They are not competing in three separate markets of "video games for Xbox", "video games for Playstations", and "video games for Nintendos". Nintendo games are substitutes for Xbox games, even though you can't take a Nintendo game and directly plug it into an Xbox. As another commenter put it, you're gerrymandering the definition of the market to suit your argument.