Question

Technology Oligopoly

Companies like Amazon and Facebook and Google are so dominant that they really have very little competition. Even when new companies like Zappos and Diapers.com threatened it, Amazon bought up both companies. Facebook did that with Whats-App and Instagram. Is that healthy competition or monopoly/oligopoly power? Discuss.

***New answer needed***

Answer 1

As we know that heathy competition is very neccessay for Companies old as well as new and For customers too. In this case, we are seeing pure example of monopoly/oligopoly power where Big and indusrty leaders in technology are using their resources and power to acquire small and new companies so that They can reduce the intensity of competition and get more market share.

There are laws like antitrust laws which make sure Companies are not involved in Unfair competition practices which harm other companies and customers. Companies like Amazon, Facebookd and microsoft acquiring other companies is not showing healthy competition but removing competition from the picture.

We know that oligoply market situation is created when There are only few sellers present and industry is dominated by large companies like Amazon, Facebook etc.This is unhealthy for Customers too because when there are one or few sellers then they offer their services at higher or predatory prices which customers can not do anything as they have no other options present.

Facebook acquiring Whatsapp, Zappos and Diapers.com bought by amazon is pure sign of collusion which is quite oppose of healthy competition. These companies want to gain leadership in the market which demoralize small firms to enter and existing firms to exit the industry.

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