A technological monopoly occurs when one company exclusively controls the right to sell a service or product. A company that holds a technological monopoly is free to set prices as high or as low as they want, due to the lack of competition in the given field. This debate is centered on the role of the government in the economy and whether tech companies have an incentive to self-regulate their innovative capabilities.
Tech monopolies must constantly innovate to develop products that the public will want to use.
The power of data
Monopolies have an immense amount of resources at their disposal. These resources can be used to gather data, which is especially useful in the tech sector.
The AT&T example
AT&T's monopoly in the 20th century allowed it to make technological strides.
A monopoly allows innovation to be a choice. A company that innovates out of necessity is innately more innovative than a company that chooses to do so.
Competition drives innovation
Tech monopolies don't innovate because they have to, they innovate because they want to. Competition consistently drives innovation, and is absent when monopolies are present.
Antitrust laws were created to encourage competition, and 120 countries have adopted some form of antitrust law.
This page was last edited on Monday, 6 Apr 2020 at 08:40 UTC