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That only works when the company has full power to set prices unilaterally, i.e. when it has monopoly power. Which is a separate problem that should be prevente
by simiones 2y ago
That only works when the company has full power to set prices unilaterally, i.e. when it has monopoly power. Which is a separate problem that should be prevented separately. If Cisco gets fined a billion dollars, it can't just hike up the price of a router, as it will lose plenty of business to Juniper/Arista/F5/etc.
- wkat4242 2y agoThey can in the short term because they have tons of companies way too invested in their ecosystem to change. See what VMWare did after the broadcom takeover. They did exactly that.
- simiones 2y agoThen what's stopping them from charging more today, in the absence of any fine?
- wkat4242 2y agoProbably that they care about their customers, unlike Broadcom who just wants to milk the fat whales and isn't interested in the small fry. In other words: long-term vision over short-term gains.