Question

Technology Oligopoly

Companies like Amazon and Facebook and Google are so dominat that really have very little competotin . Even when new companies like Zappos and Diapers. com threatenetd it Amazon bought up both companies. Facebook did that with WhatsApp and Instargram. Is that healthy competion or monopoly/ oligopoly power? Discuss

Answer 1

Technology Oligopoly exists in companies like Amazon and Facebook, and Google is so dominant that they have very little competition. Even when new companies like Zappos and Diapers.com threatened it, Amazon bought up both companies. Facebook did that with Instagram. Here it is a clear example of oligopoly. As in this, the sellers are in small numbers and rule the market. They acquire these services from the root. In the system of oligopoly, newcomers are not welcome. Companies like Amazon, Facebook, and Google own the Technology market. By this, small startups are discouraged and threatened because of already existing huge companies. These giant companies have to build up trust between them and their users, making it easy for them to remain king in their markets. Their services provided are very much unique in their way, which makes them easily accessible. Their brand name has captured the market, and then no new companies can enter the world of technology.

The company like Amazon buy the small startup to remain constant at their positions. Oligopoly characteristics match with these companies very well. To level up their business, they apply uniquely to buy them with good dealing. In this growing market, this is important to promote small startups as they generate employment.