Saturday, November 29, 2014

Trustbusting in the internet age: Should digital monopolies be broken up? | The Economist

Excerpt from this week's cover story in The Economist

"There are also good reasons why governments should regulate internet monopolies less energetically than offline ones. First, barriers to entry are lower in the digital realm. It has never been easier to launch a new online product or service: consider the rapid rise of Instagram, WhatsApp or Slack. Building a rival infrastructure to a physical incumbent is far more expensive (just ask telecoms operators or energy firms), and as a result there is much less competition (and more need for regulation) in the real world. True, big firms can always buy upstart rivals (as Facebook did with Instagram and WhatsApp, and Google did with Waze, Apture and many more). But such acquisitions then encourage the formation of even more start-ups, creating even more competition for incumbents."
Trustbusting in the internet age: Should digital monopolies be broken up? | The Economist
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