Are Google and Facebook the New Monopolies?

“Perhaps the biggest monopolies we should be worried about are two Silicon Valley giants: Google and Facebook,” Jeff Spross writes for The Week.

“Jonathan Taplin recently took this issue on in The New York Times, and his numbers are astonishing. Alphabet, Google’s parent company, has market shares in mobile search and operating systems that are two to three times as large as AT&T’s in its respective markets. Alphabet’s cash on hand dwarfs that of AT&T and Time Warner combined, and Alphabet’s level of debt is far lower. Both Alphabet and Facebook are among the top 10 largest companies in the world, and their respective market capitalizations outpace any AT&T-Time Warner combo by hundreds of billions. But most striking is this: ‘In the first quarter of 2016, 85 cents of every new dollar spent in online advertising will go to Google or Facebook.'”

“Google and Facebook are the new railroads. And producers of digital media are a bunch of turnip farmers hoping to ship their goods into town.”

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