When the US Department of Justice opened a high voltage searchlight against Facebook’s Meta on many angles, Meta unintentionally responded with a massive erosion of market value in the market. As the company crashed from close to $1 trillion to sub-$400billion market cap, the government lawyers ran away, and left it alone. Yes, that value depreciation made the case: Facebook and its cousins are vulnerable, and cannot be called monopolies to be broken apart!
They say that failure is part of success, and not the opposite of success. Meta’s share loss saved it to fight another way.
So, when some people went against DStv’s MultiChoice in Nigeria, I noted that any reasonable tribunal will rule for the company. Why? “MultiChoice, Africa’s leading entertainment company, has reported a significant financial downturn for the fiscal year ending March 31, 2024. The company recorded a staggering loss of approximately $222 million, marking the worst financial performance in its history. This downturn has rendered the company technically insolvent, raising concerns about its future viability.”
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Good People, MutiChoice is free: that huge loss made the case. Yes, this company is nowhere near a monopoly if it can lose that kind of money. The monopoly tag is an illusion in the minds of people, but financially, it is just like another company which carries foreign products and pays badly when the exchange rate varies: “The Competition and Consumer Protection Tribunal (CCPT) has dismissed a case against MultiChoice Nigeria concerning the company’s planned subscription price hike.“
Good People, this is not to support any illegal increase in prices. My point is this: just as everything has increased due to FX changes, watching Messi, Ronaldo, etc cannot be at your village rate.
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