4 ms·

How is this a cartel?

• mike_hearn 1y ago
  It has some cartel-like aspects but lacks others, probably because the software industry has a unique structure in which there are nearly no distribution costs. Cambridge Dictionary: A cartel is a group of similar independent companies or countries that join together to control prices and limit competition. It involves restricting output, controlling prices, and allocating market shares. Group of similar but independent companies (check) that join together to control prices (no, but they do join together to control the web in other ways), and limit competition (yes, by constantly adding features to HTML whilst market dumping they prevent competitors from arising). It involves restricting output (not in the literal sense, does apply if you consider the synchronized way they implement standards), controlling prices (yes, forcing them to zero instead of the natural market rate), and allocating market shares (yes, if you consider iOS browser restrictions).
  • ndr42 1y ago
    I remember that apple, google, ms had some anti-poaching agreements in place, while not directly related it seems that that is also pattern of cartels to have informal agreements that hinders competition.
  • YetAnotherNick 1y ago
    But they are not joining together in any way. In fact they have transactional relationship which is opposite of cartel.
    • mike_hearn 1y ago
      They all have contracts with Google, work on the same shared specifications and in the case of most browser companies, work on the same shared codebase. That would count as a joining together for the purposes of cartel law.
      • YetAnotherNick 1y ago
        That does not make them cartel. All are working for their own interests and Google is paying them. Cartels work together. If other browser outbids Google, the members of your "cartel" will shift to them.
  • Dracophoenix 1y ago
    By that standard, isn't Linux or really any large enough open-source project a cartel?