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Does anyone have a good idea of how we should regulate networks effects businesses such as Facebook and Amazon? It doesn't make sense to split them up regionally and splitting them in half to create a duopoly creates all sorts of inefficiencies.
The only semi-reasonable idea I can come up with is a monopoly tax on profits. Some sort of extra tax that is triggered on businesses exceeding a certain marketshare. Please, no one tell me Amazon's retail business doesn't make money, because if you believe that, you are wrong.
How India and China are regulating their e-commerce marketplace giants (from @henlaub's ecommerce newsletter)pic.twitter.com/X9zvajmDJf
Depends on what you are trying to solve with regulations. If it’s the risk of a single party providing a core infrastructure, you’ll have to accept operational inefficiencies in splitting it into independent units. Democracies are inefficient compared to dictatorships.
That's a good point. I was trying to lower costs for consumers (amazon) and lessen these big companies' power over the companies which buy their advertising (Facebook) or right to appear on their marketplace (amazon).
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