The Internet seemingly creates a breeding ground for Heavily Monopolistic (One Seller) and Monopsonistic (One Buyer) services using the Platform Model. They create a feedback loop of "All the Producers are there, so I better watch consume there and All the Consumers are there, so I better Produce there". This feedback loop is only broken by incorporating a unique feature or design, such as seem with Twitch on video hosting. The Issue is that these massive corporations buy up unique designs that begin to compete. (Example: Facebook purchasing Instagram)
The only firms that can compete in this environment are those who have enough cashflow to counter-offer on purchasing unique features and designs.
I believe that the Government needs to put into place some set of procedure that breaks the feedback loop. Making Internet companies into utilities, would only give the government a monopoly and monopsony on them.
The Internet seemingly creates a breeding ground for Heavily Monopolistic (One Seller) and Monopsonistic (One Buyer) services using the Platform Model. They create a feedback loop of "All the Producers are there, so I better watch consume there and All the Consumers are there, so I better Produce there". This feedback loop is only broken by incorporating a unique feature or design, such as seem with Twitch on video hosting. The Issue is that these massive corporations buy up unique designs that begin to compete. (Example: Facebook purchasing Instagram)
The only firms that can compete in this environment are those who have enough cashflow to counter-offer on purchasing unique features and designs.
I believe that the Government needs to put into place some set of procedure that breaks the feedback loop. Making Internet companies into utilities, would only give the government a monopoly and monopsony on them.