“Profits come out of customers’ wallets, and monopolies deserve their bad reputation…” “Capitalism is premised on the accumulation of capital, but under perfect competition, all profits get competed away.” You might be shocked by these comments; which were recently made by the Cofounder of PayPal. Mr. Peter Thielspoke on the current position of the tech industry; where he openly revealed about the industry’s monopolistic approach. Thiel’s comments exposed such a dark secret of the tech industry that it was clear that there is no chance of profit in this industry except for creating losers in the competitive market.
Capitalism Vs. Competition in the Tech Industry
Thiel’s comments on the open secret of the tech industry mark; that there is a significant gap between capitalism and competition. As the only source of profit is the customer’s wallet. Otherwise, there is the single monopoly which rules over the industry for which the position of the industry is getting declined day by day. As a result, the true charisma of the tech industry like innovation; improvement of the quality of services and products are also going down. Capitalism is killing the tech industry! As they involve such policymakers from the US who are neither experts in technologies nor have knowledge on the dynamism of the tech industry.
Monopoly is Visible in the Tech Industry | How?
As there are US policymakers who runs capitalism all over the tech industry; there are for long years no such significant innovations reported. Facebook which is now the biggest social media platform across the globe is dominating the whole social media since the last 15 years. Is it possible that there are no chances to create a similar giant social media platform in so many years? Even if it is said about Amazon, it is again ruling and expanding its power globally over all other smaller online industries; Currently, it has reported expanding its rule over different types of retails like electronic gadgets, cloud services, etc. The same thing is with Silicon Valley too.
The difference was nicely depicted through the variation of a mall and a store. The mall is the perfect example of a monopoly; where the owner takes rent from a lot of brands to display its products and showrooms. Likewise, companies like Amazon, Facebook, and Silicon. They are also following the same strategy and dominating the present e-commerce market competition through monopoly.