The dominance of tech companies can significantly affect competition in the market. These companies, due to their size and influence, can create a monopolistic or oligopolistic market structure, where a few firms dominate. This can lead to reduced competition as these companies can control prices, dictate terms, and create barriers to entry for smaller firms. Additionally, they can also influence innovation and technological advancements in the market. However, it's important to note that this dominance can also lead to antitrust issues and calls for regulation.
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Ever wonder why Silicon Valley seems omnipotent in every arena, not only in technology and business but also in government, public policy, academia, t...
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Tech companies have dangerously overtaken our economy. In 2006, the top five companies by market capitalization were ExxonMobil, General Electric, Microsoft, CitiGroup, BP and Royal Dutch Shell, worth an average of $288 billion each. In 2016, the top five companies were Apple, Google, Microsoft, Amazon and Facebook, worth on average $476 billion. Early adopters of the internet harked its ability to bring a "long tail" of revenue to individual artists and content creators. Not so. Today in the music business, 80% of the revenues are derived from 1% of artists. Compare this to the 1980s, where 80% of music industry revenues came from 20% of the content. Silicon Valley bigwigs like Peter Thiel, founder of PayPal and early Facebook investor, believe in themselves as brilliant savants whose sheer genius birthed the age of the internet. Thiel is an avowed libertarian and rejects the value of government aid or interference. The irony is that "the internet was conceived and paid for by the US ...