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They realized that getting over 50% marketshare paints a target on their back, whereas what you want is 50% of profitable money in the market. If BMW sell 10 c
by toyg 3y ago
They realized that getting over 50% marketshare paints a target on their back, whereas what you want is 50% of profitable money in the market.
If BMW sell 10 cars with $1 margin, Jaguar sell 5 cars with $2 margin, and Ferrari sell 2 cars with $40 margin, the latter took home 80% of profits with 11% marketshare. Then Ferrari just work their hardest to make sure that their customers cannot change car without a lot of effort, effectively coopting (or rather enslaving) them forever.
That keeps antitrust law at bay in practice, while egregiously breaking it in spirit.