Decoder with Nilay Patel cover image

Breaking free from big tech and big content with authors Cory Doctorow and Rebecca Giblin

Decoder with Nilay Patel

NOTE

How Big Players Converge Or Collude to Rig The Market

In highly concentrated sectors, companies tend to converge on a common position naturally due to factors like shared networks and close relationships between executives. Sometimes, collusion happens where companies sit around a table and coordinate illegal activities to rig the market in their favor. Public signaling is another way that companies in concentrated markets coordinate their actions without facing antitrust trouble. This coordination enables them to act in lockstep and maintain their dominance. In contrast, if there were more companies in the market, it would be difficult for them to agree on common positions. The tech sector's ability to agree and coordinate can be seen in the unity displayed during meetings and lobbying efforts. However, if there were more companies involved, coordination would become increasingly challenging.

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