Market Overview

Are Amazon, Google, Facebook And Apple Monopolies? In Some Ways, But This Isn't Illegal

Are Amazon, Google, Facebook And Apple Monopolies? In Some Ways, But This Isn't Illegal
Related AAPL
'Growth Is Not Dead Ahead Of 5G,' Longbow Says Of Skyworks Solutions
As China Fires Its Latest Shot, Investors Are Wondering: Is China Really Out Of Ammunition?
Apple, Techs, Banks Rise; Tilray Stock Shows Signs Of A Near-Term Market Top (Investor's Business Daily)
Related AMZN
Morgan Stanley Bullish On Amazon's New Automated Stores
Stitch Fix Falls After Piper Jaffray Downgrade; Analyst Says 'Smallest Hint Of Pressure' Could Threaten Valuation
How Amazon Is Keeping Investors Happy (GuruFocus)

There is no question as to whether companies like Apple Inc. (NASDAQ: AAPL), Facebook Inc (NASDAQ: FB),, Inc. (NASDAQ: AMZN), and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) are dominant leaders in their respective markets. But are they too dominant to the point where they should be classified as monopolies?

Being a monopoly is not illegal in the United States, despite contrary belief, Bloomberg reported. Being "big" most certainly does not equate with being "bad" unless they abuse their market power to thwart competitors that are offering lower-priced alternatives. In fact, the number of monopoly cases in the U.S. fell from an average of 15.7 a year from 1970 through 1999 to 2.8 a year from 2000 to 2014.

Companies like Facebook or Google would likely argue that they merely offer a superior product versus the competition and their dominance is far from guaranteed over time, Bloomberg suggested. Barriers to entry are after all low for new competitors and there is no shortage of funding capital available to compelling startups.

Nevertheless, here is a look at Amazon, Apple, Facebook and Google's respective market share in their businesses.

  • Amazon: U.S. e-book sales: 93 percent.
  • Amazon: U.S. e-commerce sales: 30 percent.
  • Apple: high-end smartphone sales: 63 percent.
  • Facebook: U.S. display-ad market: 39 percent.
  • Google: U.S. internet-search ad spending: 78 percent.
  • Google: European internet-search ad spending: 92 percent.

Related Links:

Gadfly's Ovide Explains Why Facebook Execs Aren't 'Villains'

A Look Into The Antitrust Environment Surrounding Internet Giants
Image Credit: By Fluffybuns - Own work, CC BY-SA 4.0, via Wikimedia Commons

Posted-In: Bloomberg ecommerce GoogleTop Stories Tech Media Trading Ideas General Best of Benzinga


Related Articles (AAPL + AMZN)

View Comments and Join the Discussion!

Trump Tweets Facebook Was Always Against Him, Hints At Collusion With NY Times And Washington Post

280-Character Tweets Are Coming To Your Timeline