In my opinion, Facebook (FB) is a monopolist, even though there is no clear and unambiguous evidence regarding this statement. In fact, the company occupies a dominant position among others at the global level due to the vast base of active users, the power of prices, and the absence of direct competition. The American company owns the most prominent social networks, such as Facebook, Instagram, and WhatsApp.
Additionally, it even has Oculus VR, specializing in creating hardware and software for virtual reality. About 3 billion people use at least one service from the company’s family of applications every month. Having a reasonably high price power in advertising, Facebook periodically forms the price for promotion in social networks and reduces the number of available advertising spaces.
By capitalization, the company often occupies leading positions globally on a par with Apple, Microsoft, Amazon, and Google, making it a prime example of a monopoly. Advertisers target almost half of the world’s population, working only with Facebook and their representatives, which has great opportunities for setting up targeted advertising.
Facebook has access to vast amounts of data about its users. People who use social networks voluntarily share personal information about themselves, which reduces costs for advertisers. Thanks to this factor, Facebook can generate the highest average revenue per user among competitors and occupy high positions in terms of revenue within the framework of promotion.