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The reason these things are regulated is because they are fundamentally limited by and tied to land property/ownership laws and there is no way to efficiently reach a consensus without violating them.

IT infrastructure has nothing in common with this aside from ISP.




They are mainly regulated because they naturally form into monopolies, just like the large internet services.


Large internet services do not form natural monopoplies. Amazon has New egg, ebay, walmart, plus a million new ones trying to overthrow them. The local cable company only has the local Phone company.


For Amazon this might just about be true, however, there are strong platform effects. Amazon is growing faster than the market. There is a fairly obvious argument to make for why its a natural monopoly: If its the first place buyers go to look for stuff, it's the first place sellers go for stuff. If it's the place where all the sellers are, it's the place buyers go to look first.

Really, given that this is a market that is growing double digits by year, the amount by which amazon dominates it is shocking.

And that is in a market that is still growing rapidly. For Facebook/Whatsapp this is even more obviously not true. Facebook even failed to leverage its social network monopoly to establish its messenger against insurgents, simply because they were a bit late.


That might look the way in theory, but it is not so in practice. There will never be another Google, or another Facebook, or another Amazon - efficiency based on scale and network effect mean they are entrenched as monopolies for ever, too big to fail.


Which is why Facebook replaced MySpace and Google replaced Yahoo and Altavista and so on.

The idea that economies of scale make it impossible for a company to never face competition is ridiculous. The only thing that can do that is govenment protectionism.

Along with economies of scale is the opposite effect: the inefficiency of bureaucracy and having competing interests between business units.

Being large isn't the magical unicorn you think.


Ten years ago you could be telling the same story about Yahoo and Microsoft and look at them now.


Yahoo was in a completely nascent unsettled market, and Microsoft didn't go anywhere. Microsofts net revenue and net income are large than Alphabets/Googles.




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