In a survey published by Scioto Analysis this morning, 18 of 30 Ohio economists agreed with the statement that social media platforms like Facebook, YouTube, and Twitter operate as monopolies within their specific content area.
Among those who agreed, some said these media companies were able to use their power to increase their profit margins and purchase competitors, thus narrowing the field for competition to wield greater market power. Multiple economists who agreed emphasized the importance of monopolistic power these companies hold over the flow of information in society and the impacts those can have on democracy. Others emphasized the degree of power these companies had over the advertising market due to their unique product differentiation.
Nine economists disagreed with the statement, with many arguing that these companies compete in a market for their products and services. Multiple economists pointed to the growth of TikTok as an example of how competitive the market is for social media. Other economists argued these companies have a fragile grip on their market power and are susceptible to future technological change.
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists.