Response 1
I agree with your opinion that Google is likely to have a data monopoly. As a matter of fact, the company is not a pure monopoly but has a monopoly on data. The company is distant from a monopoly in terms of the whole range of internet services (Investopedia, 2015). Most of the people prefer Google in searching the web to its competitors including Bing and Yahoo, among others due to the extensive availability of information it offers. It boasts of offering some of the most well-liked digital products. According to Martin (2015), Google’s search engine has turned out to be so popular that people do not search things on the internet any longer, they ‘Google’ them. The company has more data on what users want than its competitors.
Referring to Google as a monopoly would imply that it suppresses the competition. In reality, the company does not do this. In fact, Investopedia (2015) insists that it is not fair to say that the company is a monopoly since it is not suppressing the competition. I think that some people think that Google is a monopoly because it has a significant presence in the market. It had 75 percent market share in the searchers as of 2015 (Investopedia, 2015). As a matter of fact, having a large presence in the market does not mean that a company is a monopoly. Google is just doing better than its competitors by providing users with a wide range of information, thus, saving them time and money. Consequently, I concur with you that Google is not a monopoly. It has a monopoly on data. Its market dominance is due to the fact that it is offering the users what its competitors are failing to offer.
Google is not hurting its competitors as monopolies do. Ferenstein (2013) maintains that consumers are selecting Google, and more importantly, they are also requesting it to make choices for them. Ideally, this demonstrates that Google is not engaging in anticompetitive behavior like monopolists do. It is doing what the users are requesting. In other words, it is giving the customers the value for their money. Consequently, Google is not a monopoly as its competitors and some people believe.
Response 2
I like the fact that you have started your article by defining what a created monopoly is. The government plays a significant role in creating a monopoly mainly by passing regulations that prohibit the competition in a particular market. I agree with you that the alcohol sales in Ontario constitute a created monopoly. Dett (2014) reports that the consumers in Ontario must buy their alcoholic beverages through the Liquor Control Board of Ontario’s stores. In essence, the Liquor Control Board of Ontario (LCBO) is a perfect example of alcohol monopolies created by the governments. Specifically, LCBO was created by the Ontario government. Dett (2014) further reports that over the past ten years since 2014, LCBO had moved $13.7 billion dollars (excluding taxes) to the Ontario government. Ideally, this demonstrates the significant role of the government in creating monopolies.
I totally agree with your opinion that both the manufacturers and consumers would be better off if the Ontario’s alcoholic beverage retail market is switched to monopolistic competition from a government-created monopoly. To add to what you have said regarding the impact of switching to the monopolistic competition, I think it would benefit the Ontario government, the manufacturers, and the consumers. In particular, the monopolistic competition would facilitate the increase in the revenue as many companies will start manufacturing and retailing the alcoholic beverages. It will also benefit the manufacturers by creating fair competition and a level playing field. What is more, it will benefit the consumers by contributing to the improvement in the quality of the alcoholic beverages. The manufacturers would compete through enhancing the quality of their products and, as a result, this will make the consumers get the value for their money.
References
Ferenstein, G. (2013, January 3). Google Isn’t A Monopoly If Consumers Choose Speed Over Options | TechCrunch. Retrieved from https://techcrunch.com/2013/01/03/google-isnt-a-monopoly-if-consumers-choose-speed-over-options/
Dett, J. (2014, January 16). The LCBO, SAQ, And All Other Liquor Monopolies Are Technically Illegal - VICE. Retrieved from https://www.vice.com/en_ca/article/the-lcbo-saq-and-all-other-liquor-monopolies-are-technically-illegal
Investopedia. (2015, June 3). Is Google Becoming A Monopoly? | Investopedia. Retrieved from http://www.investopedia.com/articles/investing/060315/google-becoming-monopoly.asp
Martin. (2015, November 19). Google’s Search Monopoly: Should Monopolies Be Limited. Retrieved from https://www.cleverism.com/googles-search-monopoly-monopolies-limited/
