> there is nothing that makes it a monopoly. Anyone could replace it, there is nothing actively stopping them from doing so.
While I don't entirely agree with this line of argument, it's usually argued that there is in fact a very massive cost in attempting to do so and that Facebook has a very large moat with its network effect. It's very difficult to unseat an entrenched & dominant company in any field first of all, second you need large amounts of capital to compete in such a set market. You have to change the minds of practically every adult American and switch them away from a product they already know and are comfortable with (that is also 'free' to use), that's beyond difficult.
Look at how much capital Facebook raised pre IPO, you will need more than that to unseat them; no venture capitalist is going to give you that (which is why nobody is seeding Facebook competitors with billions of dollars, despite the fact that they'll earn $20 billion in profit this year; it's the same reason nobody is seeding Google competitors by the thousands).
> I'm sure for decades the Ford Motor Company was thought of as a Monopoly... and then they went bankrupt
Ford Motor Company has never gone bankrupt. Perhaps you're thinking of GM, which has been dominant in the US over Ford since 1932.
While I don't entirely agree with this line of argument, it's usually argued that there is in fact a very massive cost in attempting to do so and that Facebook has a very large moat with its network effect. It's very difficult to unseat an entrenched & dominant company in any field first of all, second you need large amounts of capital to compete in such a set market. You have to change the minds of practically every adult American and switch them away from a product they already know and are comfortable with (that is also 'free' to use), that's beyond difficult.
Look at how much capital Facebook raised pre IPO, you will need more than that to unseat them; no venture capitalist is going to give you that (which is why nobody is seeding Facebook competitors with billions of dollars, despite the fact that they'll earn $20 billion in profit this year; it's the same reason nobody is seeding Google competitors by the thousands).
> I'm sure for decades the Ford Motor Company was thought of as a Monopoly... and then they went bankrupt
Ford Motor Company has never gone bankrupt. Perhaps you're thinking of GM, which has been dominant in the US over Ford since 1932.