2 ms·
No, Facebook is not a monopoly. Your gumbo restaurant example gets at part of the issue: you need to describe the market correctly at a bare minimum. Who are
by huitzitziltzin 5y ago
No, Facebook is not a monopoly. Your gumbo restaurant example gets at part of the issue: you need to describe the market correctly at a bare minimum.
Who are the competitors in the market OR, if there are none, why is the market definition you have offered the correct one?
This is why the FTC lost their monopolization case against Facebook this January. Instead of offering a market definition, they made vague, hand-waving statements in their complaint which all revolved around it being "obvious" that FB was a monopoly. The judge was not persuaded.
~Antitrust economist.
- stale2002 5y ago> you need to describe the market correctly at a bare minimum The Monopoly is on social networks with the exact same features as Facebook, in literally every way, down to the last detail. Yes, that is a monopoly. The question that actually matters though, is how much substitute goods there are for Facebook. But yes, Facebook absolutely has a Monopoly on the product that is exactly the same as Facebook.