Monopoly: The producer market
Introduction
From my point of view, I understand that it is not beneficial that large companies have access to so much users’ information. This practice helps these large companies obtain total control in the market. This raises a safety situation to user privacy. According to Stucke, the data monopoly represents security risks that result in electronic fraud and identity theft. In addition, these companies use user information to filter and favor public opinion using manipulated information to censor.
Developing
They result in benefits for these large companies. There are potential damage that these gigantic companies cause manipulating and maintaining a data monopoly. Low quality and high prices, collecting excess personal data can result in loading the consumer at excessive prices because companies have no competition. The risk of security and secretivity, the less there are the risk that the government cannot capture the companies that generate these practices.
Even when there are so few companies this can result in the government using these companies to access certain data from some users. In addition, the data is more accessible so that cyber pirates can access it and cause even more consumer damage. Transfer of wealth to data monopolies- The data monopoly to whom the only benefits is a few companies that dominate the market and do not benefit the consumer anything. These companies provide certain free products and services and get the personal data.
In this way they extract wealth without having to pay for the value of that data in the market. These companies receive many more benefits from these data obtained by the consumer for providing their data. These companies also get wealth when using ideas created by users as their own. Even more, these companies get photos, music, arts etc. And they publish it on their platforms as if the companies were their owners. Ehrlich puts Apple as an example, which obtains information through purchases and subscriptions with the use of iOS application.
Since they dominate this application in the market. Loss of trust, when the data monopoly creates privacy protection problems many consumers choose not to share their data because users lose confidence in these companies by having misuse their information. Significant costs for third parties, data monopoly can cause competitors to exclude, as systems manipulate so that users always fall into the same products and services and in this way the system decreases user traffic to independent applications to independent applications.
Less innovation in markets dominated by the data monopoly, these companies can use their advantage of obtaining user data and using it to analyze the products and services that are being more popular and thus acquire them so that they are not competition. Moral and social concern, these companies have the ability to prevent individual autonomy. That is, the possibility of growth of small businesses is limited. Political concern, the data monopoly can influence how we can feel or how we can think.
In other words, the data monopoly can influence the public perception of governments and situations that are within the public debate. This is achieved either by filtering the information that the user receives, censoring on their platforms and manipulating or misrepresenting the information that the user receives. Limit the power of data monopolies – there are few regulations that exist to prevent data monopoly, this would be avoided with the creation of antitrust laws that promote privacy policy. The creation of more robust laws would minimize the data monopoly.
This way would avoid the extreme enrichment of large companies. I understand that, from this list of potential damage, the one that does the greatest damage is the risks of secretivity and security, since anyone can access the user data and do a lot of damage either obtaining the information and using it for purposes that definitely do not goto be for the benefit of the user. In fact, this could cause false criminal cases to be created, to use user’s credit accounts or cards.
On the other hand, the natural monopoly is the structure in which there is only a single industry for the product or service. When the monopoly is managed or regulated by the Government, because it provides essential public services, it is then known as regulated monopoly. In the monopoly as there are not many alternatives in the market, elasticity is inelastic. In inelastic demand is when demand varies little with changes in price, since they are products where there are no several alternatives or that are essential for the daily life.
conclusion
Although the price can raise, the demand for the product changes very little. Data monopolies could be more dangerous than traditional monopolies. According to Ehrlich, these companies are even more dangerous than oil and steel companies from past decades, since when moving their monopoly between the same companies and cutting the passage to their competitors, they give them the power to dominate the economy the economy. To minimize data monopoly, the solution is to create antitrust regulations and laws that help restrict the power of data monopolies.
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