Network Effects in the Facilitation of Mega-Platforms
https://medium.com/swlh/the-age-of-the-superplatform-18546fa77680
This article is public blog post that discusses the implications of big tech companies and their role as public platforms. It touches on both the virtues and pitfalls of such corporations and how they interact with startups trying to gain some foothold in the industry. The author begins by addressing the calls for breakup of such big tech companies, especially in the recent presidential races. He follows by reasoning the arguments of both sides and some of the tactics they use to convince middle-grounders. The author personally does not agree with claims saying that breaking up these conglomerates would be a waste of time. Instead, he offers a deeper look into the argument for why it would beneficial to commercial service users.
The case made by the author is the existence of network effects taking place in these mega platforms. He explains the theory that the majority of users only use website services such as Facebook and Google because they know these are the most used option by others, especially people they trust. It is similar to a situation in which a person chooses dry cleaner A over dry cleaner B because they have several friends that use and recommend A. Services such as google, that list the most used websites first after a search is run, facilitate the exponential growth of big, wealthy companies. This allows for monopolies to form in different markets and for one or several large corporations to overshadow all others looking to take part.