The business model of social media companies is based on advertising. Their true customers are the advertisers. But gradually a new business model is emerging, one based not only on advertising but also on selling products and services directly to users. They exploit the data they control, bundle the services they offer, and use discriminatory pricing to keep for themselves more of the benefits that otherwise they would have to share with consumers. This enhances their profitability even further—but the bundling of services and discriminatory pricing undermine the efficiency of the market
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