Question

Hi, so basically I had a tutorial today about the social media industry is highly monopolistic with Facebook, users provide Facebook (and 3rd-party companies) with huge amounts of data in exchange for access to the platform. provides Facebook’s algorithms with a clear picture of your preferences or demand for certain goods/services. Technological underperformance is a welfare cost associated with monopolies. For companies such as Facebook, innovation would be minimal due to lack of competition. There are many people argue that government should interfere.

From Industry perspective， could you please give some ideas to argue that the market doesn't work badly and the government should not interfere.

Answer 1

here as we are taking the social media market in our argument, one thing is clear here that its a big platform with millions of subscriber/user. so monopoly of the platform will definitly lead to consumer exploitation. here in case of facebook there is no case of consumer exploitation has happend because nothing bad or unwanted things are being given to the consumer or taken from them without there consent.  and facebook is coming up with lots of new innovation each day by keeping into view consumer preferences. government intervention or regulation on a social media platform where the priority is freedom is not a good idea. as the platform reaches to a very large group of people the prevailing political situation can manupulate it in there own favour and to reach out to people. the regulations on the freedom of thought and speech of people will be more harrasing than monopolisation here. so there is no government intervention needed in this market as people are free of doing what they want and they are choosing things that they want to which is optimal for them.