4 ms·
It's the natural result of tech gaining value, and a lot of it staying closed source: Once you are scaling, scaling very high isn't that difficult once you have
by hibikir 1y ago
It's the natural result of tech gaining value, and a lot of it staying closed source: Once you are scaling, scaling very high isn't that difficult once you have the best offering, and when you are big you can do optimizations that would be seen as wasteful at a small scale. streaming service that has wide reach isn't that different when it is dealing with 10 million or 100 million subscribers, but dedicating a guy for 3 months to save 2% of your costs through some arcane fiddling is much more profitable when you have 100 million, and then your costs per subscriber can be lower.
We also have plenty of problems that are natural monopolies. Take, for instance, credit card fraud detection. High level detection involves giving a risk score to a transaction. I sure can give a better fraud score if I see almost every transaction this card makes, and I have a very high percentage of visibility of all transactions in the world, than if I had to do the calculation by just knowing what, say, my boardgaming website has seen. The smaller contender has to be so much better algorithmically to be able to compete with a massive advantage in data quantity and quality.
And that's the real problem we have with monopolies right now: The bigger company often doesn't have a huge advantage because they are making extra shady deals, or they have to compete less, but because being bigger makes them more efficient in some ways that are completely above board.