Virtual cartels, oligopolistic structures

Global networks require global technical standards ensuring the compatibility of systems. Being able to define such standards makes a corporation extremely powerful. And it requires the suspension of competitive practices. Competition is relegated to the symbolic realm. Diversity and pluralism become the victims of the globalisation of baroque sameness.

The ICT market is dominated by incomplete competition aimed at short-term market domination. In a very short time, new ideas can turn into best-selling technologies. Innovation cycles are extremely short. But today's state-of-the-art products are embryonic trash.

    According to the Computer and Communications Industry Association, Microsoft is trying to aggressively take over the network market. This would mean that AT&T would control 70 % of all long distance phone calls and 60 % of cable connections.



    AOL and Yahoo are lone leaders in the provider market. AOL has 21 million subscribers in 100 countries. In a single month, AOL registers 94 million visits. Two thirds of all US internet users visited Yahoo in December 1999.



    The world's 13 biggest internet providers are all American.



    AOL and Microsoft have concluded a strategic cross-promotion deal. In the US, the AOL icon is installed on every Windows desktop. AOL has also concluded a strategic alliance with Coca Cola.


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Virtual cartels, introduction

Among the most striking development of the 1990s has been the emergence of a global commercial media market utilizing new technologies and the global trend toward deregulation.
This global commercial media market is a result of aggressive maneuvering by the dominant firms, new technologies that make global systems cost-efficient, and neoliberal economic policies encouraged by the World Bank, IMF, WTO, and the US government to break down regulatory barriers to a global commercial media and telecommunication market.

A global oligopolistic market that covers the spectrum of media is now crystallizing the very high barriers to entry."

(Robert McChesney, author of "Rich Media, Poor Democracy")

The network structure of information and communication technologies means that even deregulated markets are not "free". The functional logic of global networks only tolerates a small number of large players. Mergers, strategic alliances, partnerships and cooperations are therefore the daily routine of the ICT business. They bypass competition and create "virtual cartels".

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America Online

Founded in 1985, America Online is the world's biggest Internet service provider serving almost every second user. Additionally, America Online operates CompuServe, the Netscape Netcenter and several AOL.com portals. As the owner of Netscape, Inc. America Online plays also an important role in the Web browser market. In January 2000 America Online merged with Time Warner, the worlds leading media conglomerate, in a US$ 243,3 billion deal, making America Online the senior partner with 55 percent in the new company.

http://www.aol.com

http://www.aol.com/
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