They are able to extract enormous amounts of data, which is then used to generate even larger amounts of revenue. They also enjoy their strong brand popularity, which already gives them a loyal and solid customer base. These internet giants are natural monopolies in a sense that their products or services are simply better than all competitors in the markets. Many economists study the impact of monopolies, and all agree that there should be some sort of regulation to increase overall welfare for the country. Lack of competition also generally limits the need to maximize value created for consumers. Monopolies eliminate and control competition, which increases prices for consumers and limits the options they have. Monopolies create many problems for both the society and economy. However, tech firms are now valued so high that many of them are currently one of the largest in the world and there is no reason governments should not begin to enforce regulations against both monopoly and monopsony power, as well as regulations focused on protecting and limiting the use of user data. The whole reason there has been little to no regulations for tech firms is to allow them to grow faster in an open environment and stimulate growth through limitless innovation. Governments do not condemn or encourage a certain company to dominate a market. Whatever is happening with Facebook now has happened before with Google a few years ago in Europ e. The real question here is: should governments intervene and regulate these industries? The whole world is currently watching Mark Zuckerberg’s, the Founder and CEO of Facebook, testimony where he has been drilled with 100s of questions revolving around Facebook’s business model, monopolistic power, and the company’s lack of responsibility and respect towards its users data. Companies that fall under the social media, search engine, and e-commerce buckets have been specifically put under the microscope. However, governments and politicians in the America and Europe have been growing a negative sentiment towards the freedom of the giant tech firms. Tech firms have been innovating and growing freely with no strings attached for the past few decades.
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