Monopoly Fears

Something brought up my abandoned Friendster blog, which had a link to fiftymillimeter which used to be my favorite photography site by people in Athens prior to me even moving here. Why “used to be”? Well over a year ago, they stopped posting to the site. Sad, I know. Still, I was curious, Where are they now? I ran across Twitter-Free Fridays looking for Toby Joe Boudroux.

What I found interesting about this post was his approach to whether or not Twitter is or is not a monopoly. I agree with the first part. The last sentence surprised me.

Being at the top of an emerging market segment does not constitute a monopoly. Unfair practices, abuses of that dominance to limit fair access to resources and outlets – those are monopolistic. If Twitter struck a deal with Mozilla that blacklisted other microblogging services, we’d have something to talk about. Opening APIs freely and allowing supplemental markets to emerge hardly seems consistent with railroad barons.

Supplemental markets would be the equivalent of a railroad baron allowing new train stations or business to sell to the customers using the trains. Open APIs allow other corporations to find a niche. However, they are not a direct competitor. For example, with Twitter, the API is not used by Pownce or Jaiku. Friendfeed who fits in both the lifestream market and the micro-blog markets does use the API. More commonly, the Twitter API is used by companies like Summize or Twitpic in searching or posting content.

If economists or lawyers determining whether a company with a large market share is monopolistic are influenced by open APIs creating supplemental markets, then this could be a strategy to avoiding DOJ further scrutiny? At Bbworld / DevCon, a frequent point of pride from the Blackboard folks was the anticipation of Bb9 to have a more open, accessible, and useful API. This API will be able to do everything the current one in the Classic line can currently do. The anticipated additions to this API could benefit many supplemental markets. (Let’s just forget at the same time, they are saying API for the CE/Vista products is a dead-end development path.)

Scoring points with the DOJ (and more importantly the court of public opinion) could never hurt while trying to sue a much smaller competitor like Desire2Learn. Some characterize Bb as not likely to stop until D2L no longer exists. Who knows? I doubt even Chasen knows. Still, it would far fetched to characterize just this as making Blackboard a monopoly.

There are pleny of alternative LMS products to the Blackboard Learning System: Moodle, Sakai, ANGEL, eCollege, and many, many more. Heck, the rumor mill would indicate more and more higher education institutions are considering and even changing to the alternatives. Blackboard acknowleges institutions likely run multiple products. With Bb 9, they encourage people to use the Learning Environment Connector to single sign-on to into the other products. With the Bb9 frame remaining so they know who got them there, of course.  Don’t forget about a Personal Learning Environment,

Certainly I dislike that Blackboard hears my objections and continues to act in ways contrary to them. However, that happens within my own team. Neither group are criminal for ignoring me.

2 thoughts on “Monopoly Fears”

  1. I don’t see how solely maintaining an open API would be an argument against monopolistic behavior. Just because you give third-party developers a mechanism to hook their content into your system doesn’t mean that you aren’t trying to restrain trade through other means.

    In fact, not maintaining an open API isn’t an indication of monopolistic behavior either. I know that there are several proprietary systems out there that don’t open up the API, yet they have viable alternatives.

    I also wonder about the existence of open-source alternatives to a commercial product being used by companies to indicate that they are not a monopoly. Microsoft and Apple have been using that argument for some time.

  2. I don’t think I meant this as the only tactic in a strategy. I meant it as one of the many things a company would use in demonstrating they are not acting in a concerted fashion to prevent participation of others in the marketplace.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: