Soros gets it wrong: Telecom infrastructure is a monopoly, not Facebook and Google

Soros slams Facebook and Google as 'menace' to society, 'obstacles to innovation' - Business Insider: Facebook and Google effectively control over half of all internet advertising revenue. To maintain their dominance, they need to expand their networks and increase their share of users' attention. Currently, they do this by providing users with a convenient platform. The more time users spend on the platform, the more valuable they become to the companies. Content providers also contribute to the profitability of social-media companies because they cannot avoid using the platforms and they have to accept whatever terms they are offered.

The exceptional profitability of these companies is largely a function of their avoiding responsibility for — and avoiding paying for — the content on their platforms. They claim they are merely distributing information. But the fact that they are near-monopoly distributors makes them public utilities and should subject them to more stringent regulations aimed at preserving competition, innovation, and fair and open universal access.

Soros's position here is misguided. Facebook's and Google's online platforms are not natural monopolies like landline telecommunications infrastructure that delivers them to end users in their homes, businesses and institutions. Most people can choose between one and maybe two providers: a legacy telephone or cable company. These are truly public utilities since they are hardwired infrastructure unlike online social media platforms. They require fair and open universal access called for by Soros.

Facebook's and Google's online platforms are clearly hugely successful. But there's no guarantee they'll be around for decades like the telecom infrastructure that delivers them. Consumer preferences change and innovators create new services. It's a lot easier to do that with programming code and bits and bytes compared to relatively permanent telecom infrastructure as shown by the ongoing problem of service gaps that leave many premises unserved by landline infrastructure.