Comment by hshdhdhj4444

Comment by hshdhdhj4444 2 days ago

0 replies

There are definitely ways to make money.

The problem is that you cannot make as much money as you would by gatekeeping, which means billions of dollars of VC money goes to the gatekeeping app that offers its experience for free and no ads, and spends hundreds of million on ads, influencers, and partnerships to promote their offering and kill the open competition.

And once they’re entrenched enough that’s when they turn the screws on the customer.

Unfortunately our antitrust laws didn’t imagine a world where the marginal cost of serving a new customer was close to 0, so offering a product for free in order to kill competition doesn’t really trigger antitrust laws even though it’s the same kind of behavior.

I think the closest we came to something like this was Slack suing MSFT for bundling Teams, and that probably only stood a chance because of Microsoft’s history.