During my studies, it was clear that companies that basically took over a whole market of products were considered a monopoly. In the United States, it has been a law against companies becoming monopolies since the early 1900s.
However, does that also include companies that conduct business online, and more so… how far can the old Sherman Anti-Trust Act extend?
Yahoo!, Google, and now Facebook are all big kahunas in acquiring smaller internet companies.
Yahoo! has been known to acquire companies and eventually burn them to the ground – like GeoCities. Google just likes to buy and play their name in front of the product, like Google Feedburner. Facebook… well… they just like to buy and shut out competition. Facebook bought FriendFeed and recently it acquired NextStop. Facebook is looking to have its own version of FourSquare.
Sorry, but even though I am not as active on FourSquare… why in the heck would I use Facebook to check in anywhere considering they do not have the best privacy for users?
Facebook is the #2 site online in Alexa and and is one of the most powerful tools for social media marketing. However… are all these acquisitions profitable ventures for Facebook? Or will they crash and burn like some of the programs both Yahoo! and Google have let die in the past 15 years?
What do you think?