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Breaking into an established market might involve extremely high barriers to entry. Just look at Intel's ARC (Xe) GPU drivers as an example. The same is true
by mjevans 3y ago
Breaking into an established market might involve extremely high barriers to entry. Just look at Intel's ARC (Xe) GPU drivers as an example.
The same is true with scales of logistics in traditional businesses where middle companies always take a cut that includes a profit, and only major chains can get some value if the decide to outsource where it makes sense.
This is all the more true if a disruptor might be more customer focused than price competition focused.
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I'm not sure how to fix this. I am sure that any fix should come at things from a consumer benefits perspective and not just a broken window fallacy perspective. Maybe breaking up integrations (vertical and horizontal), and possibly higher taxes on anyone that has more than 20% of a given market, with some sort of startup support (think government agencies as VCs / prefer to go with not the >20% of the market where possible).
- tomrod 3y ago> I'm not sure how to fix this Antitrust regulatory enforcement.
- chii 3y agoit's a bit broad to just say "antitrust regulations". You don't want to discourage success. You want to discourage gatekeeping. If consumers choose one company overwhelmingly over another, leading to a "monopoly", it's not antitrust worthy enough to break up. If the company changes the landscape by making rules, protocols and standards with their products such that others cannot compete, then yes, antitrust would need to come in. Therefore, it's a judgement, rather than a set of rules. And it is in this judgement that one must foster.
- jjmarr 3y agoYou can't regulate away the physical cost of building millions of miles of fibre optics cables or a trillion dollar semiconductor fabrication plant. There are many barriers to entry that aren't created by companies or governments.
- DrJokepu 3y agoThe fiber optic cables you can definitely regulate. You can make a law that prohibits owners of last mile fiber optic cables from operating retail ISPs and that they are required to allow any retail ISP to lease their last mile infrastructure. I’m not advocating for this solution, I’m just saying that it’s possible.
- tomrod 3y agoFiber is not the only medium available for transfer, and an unregulated vertical monopoly is not the only utility business model.