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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Bertelsmann

The firm began in Germany in 1835, when Carl Bertelsmann founded a religious print shop and publishing establishment in the Westphalian town of Gütersloh. The house remained family-owned and grew steadily for the next century, gradually adding literature, popular fiction, and theology to its title list. Bertelsmann was shut down by the Nazis in 1943, and its physical plant was virtually destroyed by Allied bombing in 1945. The quick growth of the Bertelsmann empire after World War II was fueled by the establishment of global networks of book clubs (from 1950) and music circles (1958). By 1998 Bertelsmann AG comprised more than 300 companies concentrated on various aspects of media. During fiscal year 1997-98, Bertelsmann earned more than US$15 billion in revenue and employed 58.000 people, of whom 24.000 worked in Germany.

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