Re:Alabama farmer sues John Deere for ‘right to repair’
by adrianN on Monday January 24, 2022 @03:04AM
(#30054726)
Entering a market is not free. Suppose you want to start a chip business because the small handful of existing manufacturers have formed a cartel. To be competitive you need hundreds of billions in starting capital and you must be able to survive price dumping longer than the members of the cartel.
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Re:Alabama farmer sues John Deere for ‘right to repair’
by AnthonyMouse on Monday January 24, 2022 @01:14PM
(#30061528)
This is the purpose of the contract. You have to spend $200B, so you go to several large customers and sign contracts contingent on your ability to supply which will guarantee you $300B in future revenue. Now you can raise funding against the guaranteed revenue and the dumping can't change that because the contracts are already signed.
To prevent this the incumbents could go in and undercut you before you actually build anything, but that's not much of a cartel anymore then. Anyone could "compete with them" just by threatening to raise funding.