Monday, August 11, 2008

MS, Amazon, Google's ecosystems and their conflicts

A decade ago, MS was having conflict with software companies that builds software on windows platform, because there were allegation that MS favors its own application (e.g. IE, Office) over third-party applications.
Since 2 years ago, merchants renting Amazon's e-tailor platform are concerned about Amazon's being both the platform provider and a merchant will give its own stores an unfair advantage over other merchants. That's why Toys R US, Borders left Amazon and started building their own web storefront.
Now, Google's Knol is the target of complaining from content providers like Wikipedia and About.com, because Google might favor its own content website over others in its search engine.

One can see a pattern over all three disputes. A platform company moving into the domain of users of the platform. It's the most natural thing to do for those three companies, because they want to dominate the whole value chain, but those who got squeezed out will complain. It's important for the platform companies to balance its capitalization in the platform user's arena, so that they are not draining their own ecosystem. 

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