Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

How do these services turn themselves into natural monopolies? There are many non-Apple phones available. There are also non-google search engines. What makes these natural monopolies then?


I'm not GP but a monopoly doesn't mean "we own the market everywhere" or "we have close to 100% of the market-share". We have this same discussion every time someone says monopoly..

Apple for example is a 100% monopoly in the app store. Likewise Google can be a monopoly on their search result page. It would have sounded insane some years back but today, when google search is a gatekeeper (like Facebook), they absolutely can.

You use the example of there being many non-Apple phones (while strictly true there are really only two players, iOS and Android). Can Apple use their power to kill your new innovative Fitness-From-Home app? They are absolutely in a position to do so. There's really not much else to it than that. Can Google strangle travel planner sites by showing flight plans in Google search results? Yes they can and a court would likely see this as abuse of a monopoly no matter if Google have 70% or 99% of the search engine market.

Or use the grandma test: Can you sell your Travel Planner Service to Grandma if Google starts adding the same info to Google search for "free"? Can you sell her a Fitness App for her iPhone if Apple shuts you out because they are going to launch their own iClone fitness app?

If Google goes from Search to Search/travel planner/hotel reservation/translator/and so on they are (ab)using their power to move into other areas and by shutting out competition they get more users thereby becoming a natural monopoly.

And as always happens when "The M" word is used and someone explains something we will have replies yelling Apple's AppStore isn't a monopoly, you can just use Android and we go around in circles.


> Apple for example is a 100% monopoly in the app store.

Every physical store is a monopoly in their own space. It is hard to see that specific point being important.

The fact that Apple gate-keeps their store is also a major selling point of the iPhone. I don't want random people to be able to load random apps onto the phones of my family members. Having a programmable combined GPS/microphone/wallet/photo repository on hand all hours is already quite bad enough, there is an argument for curation here. If Apple ever starts making decisions that are unacceptable/grossly inferior to an alternative then there are other phones.

> Can you sell your Travel Planner Service to Grandma if Google starts adding the same info to Google search for "free"?

That isn't monopolistic behaviour, that is simply competition. Monopolistic is when Google won't allow your Travel Planner to enter their search index, or deranks it in favour of their alternative. If the competition is head-to-head then there isn't anything special about the situation.


>Every physical store is a monopoly in their own space.

This comparison is disingenuous. There aren't only two big physical stores (and maybe a handful small stores hardly no one knows about) in the entire world. If 99% of all physical stores were a Walmart or Costco you could compare but luckily this isn't so.

>The fact that Apple gate-keeps their store is also a major selling point of the iPhone.

That is beside the point. Just because something is a feature you (or most) like doesn't mean it is legal or not, monopoly or not. I'm not going to discuss if it is a good or bad feature because it would be off-topic.

>Monopolistic is when Google won't allow your Travel Planner to enter their search index, or deranks it in favour of their alternative.

Consider this: You have 100.000 result on Travel planners today with your site being number 3 and tomorrow you also have 100.000 results with your site being number 3 but now there's a big box above all the results that tells you what you were looking for (and the data might even come from your site). This is way worse than being de-ranked. That's not fair competition.

Another example: You have one of many Fitness Apps for iOS. For years Apple can see data on just what people search for, install, etc. and then one day they use all this data to create their own fitness app. Quickly your app would be irrelevant. Add to that that we have proof that Apple abuse their position by offering to buy a successful app and if refused they harass the publisher in different ways and create their own.


> This comparison is disingenuous.

You say that, but then you make a completely different argument for why Apple is a monopoly. I'm just responding to what you've said, without using my well developed psychic powers to divine what different point you meant without saying.

You started your post with a point that is so weak that it is indefensible. Apple creating a virtual store and having a 100% monopoly in it simply isn't remarkable. That is how stores work, the store owner has near total control what is in the store to their benefit.

If your argument is that it is incomparable to a normal store then well ok, but you're going to need to argue that. A reasonable person could see Apple's store as comparable to an actual store. Apple very likely does.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: