Post by Joerg Sprave on Mar 4, 2018 19:26:58 GMT
I have an interesting thought.
German anti trust law says that if a company has a monopoly in a significant market sector, then it must refrain from ruining potential competitors by undercutting prices (= selling their products below profitability),
Google has been saying for years that they can't make any profits on YouTube.
Yet they are the only video service that pays out a significant portion of their income (60%) to the creators. This money is logically at least in part coming in from investors (alphabet and it's shareholders). This is why services like Vimeo can not compete. They don't have the funds to sustain such payouts on top of the cost of operation.
You could say that YouTube sells their ads way too cheap. This income does not cover their cost. They have been doing that for years, crushing all competition that way. This could be unlawful abuse of a monopolistic market position.
Thoughts?
German anti trust law says that if a company has a monopoly in a significant market sector, then it must refrain from ruining potential competitors by undercutting prices (= selling their products below profitability),
Google has been saying for years that they can't make any profits on YouTube.
Yet they are the only video service that pays out a significant portion of their income (60%) to the creators. This money is logically at least in part coming in from investors (alphabet and it's shareholders). This is why services like Vimeo can not compete. They don't have the funds to sustain such payouts on top of the cost of operation.
You could say that YouTube sells their ads way too cheap. This income does not cover their cost. They have been doing that for years, crushing all competition that way. This could be unlawful abuse of a monopolistic market position.
Thoughts?
