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Should highly profitable monopolies like Facebook and Google be handled differently than other companies?

Sometimes monopolies are natural and good for consumers. For example, you'd prefer to join social network that has all your friends, a dating site with lots of members, a business networking site with lots of connections, or a shopping site that sells everything. Governments typically step in to break apart monopolies when they financially harm consumers by pricing their products or services higher than otherwise would be with competition... especially when the product is a commodity. Breaking up natural monopolies can result in a worse situation for consumers - would you want to find your friends across 5 mini-Facebooks? Additionally, since Facebook and Google give their services away for "free", governments are at a loss to find a victim. However, the services are not free as consumers end up paying higher prices to buy the advertiser's products. As the cost of running these services is far less than ad revenue, the gross profits soar as shown below.

Monopolistic profits of tech companies should be...

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Admin 8 July 15
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26 comments (26 - 26)

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1

Which part do you find objectionable? Profit or Monopolization. They are NOT the same thing - at all

iThink Level 9 July 15, 2020

This post came from a conversation I had recently with FL politician Laura Loomer who is advocating for the breakup of big tech monopolies. While I am a capitalist, I wonder if natural tech monopolies are better to be heavily taxes and regulated than they are to be broken up... if their monopolistic profits are a tax on society. Loomer is targeting their censorship and not profits.

@Admin
I repeat - profit and monopoly are two completely different things.
If Loomer can't make her case without trying to inflame emotion using the word "profits" as an adjective then I would say she has not done a good enough job of proving or demonstrating that the "big tech" companies comprise a monopoly and how that theoretical monopoly is harmful to the consumer.

"Profits" has nothing to do with whether or not there is a monopoly in the first instance.

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