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Economics | Technology
Big Tech Is Gorging Startups
It’s a threat to domestic competition.
To understand the significance of their actions, let’s discuss why they do it and why it matters.
Why they do it
Big tech firms were once startups. They struggled to acquire funding, sell their radical viewpoints, and battle competitors.
Over time, those who failed were forgotten, and those who succeeded became incumbents.
The cycle repeats.
New startups enter the landscape. They struggle to acquire funding, sell their radical viewpoints, and battle competitors: last cycle’s startups, this cycle’s incumbents.
Some will fail and be forgotten. But others will become a real threat to incumbents.
Like WhatsApp.
Facebook had the communications market cornered. Their revolutionary social platform connects people in every corner of the world. Messenger, their direct-messaging interface, allowed users to text each other from anywhere.
