[HN Gopher] Alibaba breaks itself up in six
       ___________________________________________________________________
        
       Alibaba breaks itself up in six
        
       Author : ShaurAsar
       Score  : 295 points
       Date   : 2023-04-03 14:56 UTC (8 hours ago)
        
 (HTM) web link (www.economist.com)
 (TXT) w3m dump (www.economist.com)
        
       | [deleted]
        
       | thrdbndndn wrote:
       | Previous discussion:
       | https://news.ycombinator.com/item?id=35339668
        
       | Equiet wrote:
       | A missed opportunity to break it up into 40
        
         | DesiLurker wrote:
         | took me a sec to realize that this was not a serious remark.
         | :-)
        
         | mportela wrote:
         | 42 is even better
        
       | foolinaround wrote:
       | https://archive.ph/VYxH4
        
       | fidrelity wrote:
       | Isn't this very similar to the plotline of Inception? Looks like
       | the CPC has mastered multi-layered inception.
       | 
       | /s
        
         | hulitu wrote:
         | At least some countries fight monopolies, not promote them. /s
        
           | crop_rotation wrote:
           | The CCP is not fighting monopolies, it is fighting companies
           | that it doesn't like. Taobao/Tmall will still be a monopoly
           | on online retail and will be a full part of Alibaba without
           | taking external investment.
        
           | Animatronio wrote:
           | Why the /s though? It's obvious some countries actually
           | promote monopolies, especially when they go global.
        
             | fortuna86 wrote:
             | Like Huawei. China wants them to have a monopoly everywhere
             | on earth.
             | 
             | Alibaba had nothing to do with being a monopoly, it became
             | a power base to rival the government so it had to be broken
             | and scattered.
        
               | Animatronio wrote:
               | Huawei, Gazprom, Google, Facebook, probably each G7
               | country has a champion it wants to rule the field.
        
               | fortuna86 wrote:
               | Does any western government activity promote monopolies
               | abroad and threaten consequences if such monopolies are
               | fought against, all while accepting state-backed monopoly
               | at home?
               | 
               | https://www.wsj.com/articles/china-threatens-retaliation-
               | aga...
               | 
               | To recap, the Alibaba break up wasn't about a monopoly,
               | it was about a rival power base to the CCP that couldn't
               | be allowed to exist.
        
               | Animatronio wrote:
               | Well, how about Boeing vs Airbus?
        
       | 29athrowaway wrote:
       | Jack Ma criticized the Chinese way of doing things, he had been
       | planing to do an IPO for Ant group.
       | 
       | That IPO was canceled by the CCP, the guy disappeared for months
       | and now his stuff is being broken up.
       | 
       | The message is clear: no matter who you are, criticize the party
       | and you will get rekt.
        
       | differentView wrote:
       | How is this a breakup if Alibaba is just going to become a
       | holding company owning those six new companies?
        
         | ssnistfajen wrote:
         | Because it is not breakup, in the same way that the
         | establishment of Alphabet Group was not a breakup.
         | 
         | But as it has always been on the U.S.-dominated English-
         | speaking Internet and media, facts and objectiveness do not
         | matter when it comes to any topic related to China. Anyone can
         | twist, spin, or literally invent anything to fit their own
         | narrative about China and people will believe it without
         | question as long as it leans on the antagonizing side.
        
           | KoftaBob wrote:
           | > facts and objectiveness do not matter when it comes to any
           | topic related to China
           | 
           | Replace "China" with pretty much every topic, they do this
           | with everything to draw attention from viewers.
        
           | shp0ngle wrote:
           | The strict law about what can and cannot Chinese say, share,
           | and see online doesn't help this.
           | 
           | Yes there are tons of nonsense online about China. But it is
           | not helped by the total dragnet there is over there. And by
           | the fact that some of the over-the-top stuff about China is
           | indeed true.
           | 
           | I mean Jack Ma really _was_ disappeared right after the
           | speech.
        
             | ssnistfajen wrote:
             | Tim Cook or Sundar Pichai also step off the stage after
             | finishing speeches. Does that mean they have been
             | "disappeared"? They have a private life in case you aren't
             | aware. Acknowledging the fact that the CCP is meddling with
             | private sector businesses is not an excuse to spout
             | misinfo.
        
               | kkarakk wrote:
               | jack ma disappeared from the entire world - not a single
               | photo could be found by people legitimately asking where
               | he was. not even a publicist "he's holidaying in this
               | country at the moment" could be had. if he was a reticent
               | person maybe it could be excused but he's been a jet
               | setter for a decade now with tons of social appearances.
        
               | FormerBandmate wrote:
               | He went missing for months
               | 
               | Tim Cook stepped off Trump's board of CEOs and did not
               | disappear. Jack Dorsey banned Trump from Twitter and
               | didn't disappear. Elon Musk constantly goes after Biden
               | for no reason. He has not disappeared.
        
         | yabones wrote:
         | Perhaps they're transitioning to the Korean "chaebol" model
         | with complex structures of ownership to obscure the true
         | organizational structure?
        
           | re-thc wrote:
           | The true structure is the government is now the holding
           | entity.
        
       | opentokix wrote:
       | CCP breaks up Alibaba in six
        
         | fortuna86 wrote:
         | Love the use of the passive tense. "Company decides to become
         | less of a threat to president for life".
        
       | skippyboxedhero wrote:
       | Isn't seven the most powerfully magic number? Wouldn't it be
       | better, make Alibaba stronger...to split the soul into seven
       | pieces?
        
         | rs999gti wrote:
         | Even numbers are lucky in Chinese culture
        
         | jabroni_salad wrote:
         | 8 is a much luckier number and is associated with
         | fortune/wealth. I think 7 is mainly a western thing.
         | 
         | although the rule of threes seems to be a universal constant.
         | Just something about it.
        
           | skippyboxedhero wrote:
           | It is a Harry Potter quote/reference.
        
       | xwdv wrote:
       | I always appreciate the CCP's twisted sense of symbolism. They
       | chose 6 pieces to symbolize Jack Ma having his arms, legs and
       | head cut off, and this is what remains. Chilling.
        
         | eunos wrote:
         | It's just your imagination thats too vivid
        
       | ShaurAsar wrote:
       | [flagged]
        
       | web3-is-a-scam wrote:
       | > The company's artificial-intelligence and cloud-computing
       | operations will form a separate unit, led by Daniel Zhang, the
       | current group chief executive.
       | 
       | So it looks like Jack Ma's joke about AI meaning "Alibaba
       | Intelligence" is coming to fruition.
        
       | davidgerard wrote:
       | https://archive.is/VYxH4
        
         | xd1936 wrote:
         | Error code: SSL_ERROR_NO_CYPHER_OVERLAP
        
           | nightpool wrote:
           | Strange, works fine for me. Maybe an enterprising ISP trying
           | an HTTPS downgrade attack against a "blocked" site?
        
       | tiffanyh wrote:
       | The six separate units are:
       | 
       | 1. Cloud Intelligence
       | 
       | 2. Taobao Commerce
       | 
       | 3. Local Services
       | 
       | 4. Cainiao Smart Logistics
       | 
       | 5. Global Digital Commerce
       | 
       | 6. Digital Media and Entertainment Group
        
       | duxup wrote:
       | It's always hard for me to understand the why when it comes to
       | China's government.
       | 
       | "Investors cheer the move as signalling the end of China's tech
       | crackdown"
       | 
       | If this is government action then why would this be the "end" of
       | government involvement?
        
         | alephnerd wrote:
         | Because there is now an understanding of who the actual
         | regulators are and what the legal process to operate a tech
         | company within the PRC is.
         | 
         | When we talk about anti-trust and tech industry policy in the
         | US, we know by default that means that it's going to involve
         | the FTC (M&A), SEC (Accounting/Financing Practices), and the
         | House+Senate Judiciary Committee (review M&A, Financing, and
         | Accounting Practices decided by FTC+SEC)
         | 
         | The Chinese tech industry in the 2010s had a number of
         | competing regulators - China Securities Regulatory Commission,
         | China Banking and Insurance Regulatory Commission, State
         | Administration of Foreign Exchange, Ministry of Industry and
         | Information Technology, Cyberspace Administration of China,
         | State Administration for Market Regulation, People's Bank of
         | China, etc.
         | 
         | Because there are so many regulators/agencies stepping on each
         | others toes, there was a lot of intrigue and bad practices in
         | the Chinese tech industry from 2000-2020 (eg. Crypto companies
         | like FTX and Binance bribing PBOC officials and AntPay arguing
         | that as a FinTech it should be regulated as a tech company/by
         | the MIIT and not financial regulators)
         | 
         | During 2019-2022, there was a massive regulatory reform across
         | the board that divvied up the roles of individual agencies and
         | created the norms that startups and companies needed to follow.
         | 
         | The resolution of Ant Group's whole saga is basically setting
         | precedent on which agencies/regulators within the PRC do what,
         | and now investors have an easier time understanding how to vet
         | investment risks in the tech sector.
        
         | andy_ppp wrote:
         | It's usually just about maintaining and increasing power. And
         | warning others by demonstrating it too.
        
         | RedCondor wrote:
         | Reading Xi Jinping is pretty interesting:
         | 
         | Upon settling in the countryside, I saw firsthand the power of
         | dripping water drilling through rock. That image, which
         | captured the spirit of persistence, has stayed with me all
         | these years. It has become a well-worn source for contemplating
         | life and movement.
         | 
         | Rock and water are two opposing elements that are used to
         | symbolize dogged stubbornness and gentle fluidity. Yet despite
         | being "gentle," water will drill through "solid" rock over
         | time.
         | 
         | As a metaphor for people, this is the embodiment of a certain
         | moral character: it is the willingness to rise to fight each
         | time one falls and the courage to sacrifice oneself. A single
         | drop of water is small and insubstantial. It will die a cruel
         | "death" in any battle with a rock. Yet in that brief moment of
         | "sacrifice," even though it cannot see its own value and
         | achievement, it is embodied within the countless drops of water
         | that have already fallen, and the triumph of finally drilling
         | through the rock. From the perspective of history or
         | development of an economically disadvantaged area, we should
         | not seek personal success and fame. Instead, we should strive
         | to make steady progress one small step at a time and be willing
         | to lay the groundwork for overall success. When everyone doing
         | our work models themselves on a droplet that is ready to
         | sacrifice for the greater good, we need not worry that our work
         | is not important enough to make lasting change!
         | 
         | As a metaphor for things, dripping water is a demonstration of
         | dialectical principles that use softness to overcome hardness,
         | and the weak to control the strong. I believe in the invaluable
         | spirit of that drop of water, which bravely goes into the
         | breach with no thought of retreat. Those of us who are involved
         | in economic development will inevitably encounter complications
         | in our work. We can either rise to the challenge or flinch and
         | run away. It all depends on whether we have the courage to
         | adhere to philosophical materialism. If we allow ourselves to
         | be filled with trepidation, the kind of fear that comes from
         | standing at the edge of an abyss or treading on thin ice, we
         | will lack the courage to do anything. We will accomplish
         | nothing. Nevertheless, courage alone is not enough.
         | 
         | When dripping water takes aim at a rock, each droplet zeroes in
         | on the same target and stays the course until its mission is
         | complete. The drops of water fall day after day, year after
         | year. This is the magic that enables dripping water to drill
         | through rock! How can it be that our economic development work
         | is any different? Just look at areas where the economy is
         | lagging. Historical, environmental, and geographical factors
         | have all played a part in holding back development. There are
         | no shortcuts. Nothing can change overnight. Instead, we need to
         | focus on the long haul by turning quantitative changes into
         | qualitative changes. We need to be the dripping water that
         | drills through rock. When talking about reform and opening up,
         | we cannot assume that help will be coming from left and right,
         | nor can we afford to wait until conditions are perfect enough
         | to ensure success. Instead of building palaces in the air, we
         | need to square our shoulders and get down to work. When talking
         | about economic development, we cannot simply race to build
         | high-rises and open up big factories, nor can we focus on
         | dramatic results at the expense of necessary infrastructure.
         | Otherwise, success will be elusive, and opportunities will be
         | easily missed.
         | 
         | Instead of daydreaming about overly ambitious or flashy
         | projects, we need to have a firm footing in reality as we take
         | concrete steps to reach long-term goals. Instead of "setting
         | three fires" in the hope they will succeed, we need to work
         | steadily and make solid progress. Our work calls for the
         | tenacity to keep chipping away. Working by fits and starts will
         | not get us anywhere.
         | 
         | When I describe my awe upon seeing the power of droplets
         | drilling through rock, I am praising those who have the
         | willingness to rise each time one falls, and the moral
         | character to sacrifice for overall success. I am expressing my
         | admiration for those who develop a solid plan and then have the
         | tenacity to see it through to the end.
         | 
         | https://redsails.org/water-droplets-drilling-through-rock/
        
         | jeron wrote:
         | I think they mean the end of China's crackdown wrt alibaba
        
           | duxup wrote:
           | Oh, got it. That makes more sense. I don't know if it's true
           | even from that angle... but I get it.
        
           | AlecSchueler wrote:
           | Just checking my understanding:
           | 
           | They prefer individual businesses not to get to big,
           | monopolistic or dominant across multiple sectors, as this
           | would give the business undue influence over politics? And of
           | course they're operating on the idea that the political
           | sphere governs the market and not that the biggest businesses
           | should be the most powerful lobbiests.
           | 
           | So this is an end to it because it effectively neuters the
           | one super company by making it into several more easily
           | regulated companies?
        
             | mikea1 wrote:
             | > this would give the business undue influence over
             | politics?
             | 
             | It's about power. From the article:
             | 
             | > Communist authorities dislike the idea of anything, let
             | alone a large private business, outshining the party. And
             | the country's leaders bristled at the high profile of
             | Alibaba's founder, Jack Ma, an icon of Chinese enterprise
             | who every now and again dared question their decisions.
        
             | selimnairb wrote:
             | It is my understanding that China has a long history
             | (hundreds of years at least) of the government keeping
             | merchant power in check, lest it lead to unrest due high
             | levels of inequality. This is why China didn't see
             | Capitalist primative accumulation in the early modern
             | period.
        
               | scythe wrote:
               | China had a brief nearly capitalist period with the Song
               | Dynasty, building on growth during the Tang Dynasty, but
               | the Song royal line, an Achilles heel of any monarchic
               | empire, started to break down in the early 13th century,
               | which contributed to the Mongol conquest. The next three
               | dynasties were highly corrupt: the Yuan was overtly
               | colonial, treating natives as an underclass; the Ming got
               | off to a strong start but by the mid-1400s were consumed
               | by palace intrigue and repressed the study of algebra
               | (which was available via Islamic Central Asia) due to
               | xenophobia; the Qing were an ethnostate again with some
               | early Han defectors classified as "honorary Manchu",
               | which may have inspired the "honorary Marleyan" motif in
               | _Attack on Titan_.
               | 
               | So it is a little more complex than that.
        
             | devsda wrote:
             | Limiting a company's influence (by lobbying or otherwise)
             | has been one of the arguments for breaking up big tech
             | elsewhere too.
        
         | ShaurAsar wrote:
         | China's government has been cracking down on its tech industry
         | for some time now, and this has created uncertainty for
         | investors. However, recent moves by the government, such as the
         | approval of new video game titles and the easing of regulations
         | for foreign investors, have been seen as positive signals for
         | the industry.
         | 
         | It's important to note that the Chinese government is not
         | monolithic, and different factions within it may have different
         | goals and priorities. The recent actions that have been
         | perceived as positive by investors may reflect a shift in
         | priorities or strategy by certain government officials or
         | agencies.
        
         | devsda wrote:
         | I guess the idea could be that with this the govt has chosen a
         | company to set an example and with it the criteria for
         | crackdown.
         | 
         | So, there's no uncertainity regarding who will be picked next
         | and why.
        
         | lookACamel wrote:
         | Ending a crackdown does not mean the end of involvement.
         | Involvement can be neutral or positive, a crackdown is
         | negative.
        
           | infamia wrote:
           | Either way, it means more levers of control by the CCP, which
           | is not positive if you're trying to run a business. It
           | introduces more uncertainty if nothing else, which is a
           | negative.
        
         | scottLobster wrote:
         | Because Investors (capital I) are children with no long-term
         | memory who think they're special. Or they have faith (misplaced
         | IMO) that Xi will do the rational thing, which in their minds
         | is "thing that makes money". Because China has no history of
         | sacrificing its economy/peoples' quality of life for political
         | reasons, or collapsing age demographics, nope it's all just one
         | long glorious period of Deng Xiaoping-style openness (never-
         | mind the man's direction was "hide your strength, bide your
         | time") and over a billion potential consumers!!!
         | 
         | Anyone putting money into a Chinese company is betting that Xi
         | and the CCP will allow said company to do things that make them
         | money, and won't sacrifice said company for political gain.
         | Good luck with that! The beatings will continue until
         | regulation stops US investment in China altogether, and then
         | the Investors will whine about it to no end.
        
         | sigzero wrote:
         | It will not "end" any government involvement. That's just the
         | spin.
        
           | kevin_thibedeau wrote:
           | They just multiplied the political officer headcount by six.
           | Definitely a new beginning.
        
         | geodel wrote:
         | In terms of demographic Chinese population has now started
         | declining. So China is no longer in need of aggressive,
         | exploitative model of _capitalism_ they were following for last
         | few decades because they needed job growth at any cost.
         | 
         | To western eyes suddenly Alibaba seems to be kind of hero
         | standing up to authoritarian government but from what I read
         | what really got Alibaba in govt crosshairs was its predatory
         | finance business. I don't think any country would have liked
         | this type of business but many would've tolerated because "free
         | enterprise / follow the law" thinking.
         | 
         | So the way I see this is "law taking its course" Chinese way
         | and proactively taking action against business which could be
         | socially bad in future.
        
         | SilverBirch wrote:
         | I'm not an expert on this, but from what I gather this all
         | leads back to a power struggle between Jack Ma and Xi Jinping.
         | Ma was ready to go public with AliPay and in the build up to it
         | made a speech that criticised the government regulation as
         | being out of date. This was viewed as a challenge to the
         | governments power. Over the next few months the government
         | moved to tighten regulations on companies like AliPay and
         | disappeared Jack Ma. The government since then has basically
         | completely taken over his entire empire, and sliced it up into
         | pieces. This is basically Xi sending the message that private
         | business in China will always defer to the government. All of
         | this has natural absolutely tanked the value of China's tech
         | sector. So people are hoping that now the worst of it is done
         | and they no longer have enormous tech giants, but a series of
         | smaller companies, that the government will return to being
         | more hands off and in turn those smaller companies can return
         | to more natural valuations.
        
           | freedomben wrote:
           | Good analysis. Related:
           | https://www.nbcnews.com/news/world/alibaba-founder-jack-
           | ma-b...
        
           | voisin wrote:
           | > So people are hoping that now the worst of it is done
           | 
           | What is the basis of this hope?
        
             | [deleted]
        
             | SilverBirch wrote:
             | Well, the problem was that Jack Ma was getting so powerful
             | by being in charge of a massive tech empire he was
             | threatening the CCP's power. The remaining split up
             | companies are no where near as big or powerful, are staffed
             | largely by people who have been put in by the CCP, and now
             | know what happens to people who criticise the government.
             | They've made their point, so the question is... why not
             | ease up a bit and let prosperity return. Look at the absurd
             | hype around AI in the US right now, I'd imagine the CCP
             | would be quite worried that they're going to lose a
             | strategic position in this technology if they don't ease
             | up.
             | 
             | Also, they've just got to ease up at some point right?
        
               | toss1 wrote:
               | >>Also, they've just got to ease up at some point right?
               | 
               | Nope. There is absolutely nothing (other than whatever
               | good judgement they might have) that would prevent them
               | from flying the entire craft straight into the ground.
               | 
               | Agree that the problem for Jack Ma was he was becoming a
               | threat to CCP power. He may have been able to pull it off
               | and make a new countervailing power, but he spoke up too
               | soon and CCP/Xi figured out the threat and took action.
               | Maybe another player will be smart enough to stay below
               | the radar for much longer, but it'll be years if not
               | decades
        
             | AbrahamParangi wrote:
             | I think on some level people implicitly believe that the
             | Chinese govt will choose prosperity over power because
             | that's what they imagine _they_ would do. I suspect that
             | will never happen.
        
               | toyg wrote:
               | No, it's because that's what the previous generation of
               | Chinese leaders did. Post-Mao, party elites have largely
               | chosen wealth over power at critical junctures,
               | maintaining an overall equilibrium. Xi Jinping broke that
               | setup: there is no elite anymore, only himself; and he's
               | made a point that wealth cannot be used as a shield from
               | his power.
        
               | bobthepanda wrote:
               | It's interesting because the other contender for general
               | secretary at the time, Bo Xilai, was even more outwardly
               | Maoist. So I suppose something was bound to happen to
               | that equilibrium.
        
               | tpm wrote:
               | And I suspect you are right as long as current leaders
               | wield the power. Periodical purges in all ranks of power
               | and society are a time-tested feature of communist
               | regimes. Without them the party cadres grow stale and
               | lose their revolutional vigor. I can imagine it's a bit
               | similar to how the free market works, with companies
               | going bankrupt or taken over all the time, only there
               | it's the changing conditions and the 'invisible hand of
               | the market', while in communist dictatorships it's always
               | intentional and directed (and way more brutal), because
               | the rigid system does not self-regulate, at least not the
               | way the leaders would like.
        
             | lanternfish wrote:
             | Presumably because Alibaba - the challenger that started
             | this crackdown - is now slain.
             | 
             | On a political level, there are only so many Chinese
             | companies with enough power to actually threaten the CCP,
             | and Alibaba is probably enough of an example to keep them
             | in line - further crackdowns are probably unnecessary.
        
               | re-thc wrote:
               | There's been lots of "crackdowns" before Alibaba. Maybe
               | "slain" as well but no not the only victim.
        
               | voisin wrote:
               | Must be nice for international companies to know that
               | Chinese companies will always be restrained from becoming
               | too large. It's like they have to fight with one arm tied
               | behind their back - get too big and your own government
               | will cut you up.
        
               | kkarakk wrote:
               | xi jinping has been criticised for this but he's in his
               | "my legacy lives on forever" phase of life. another
               | decade and he's done - just consolidating power for his
               | family at this point.
        
           | ptx wrote:
           | Wasn't there also something about Alibaba specifically
           | working on a money lending scheme which circumvented banking
           | regulations and which regulators feared would create vast
           | amounts of unsecured debt and destabilize the economy?
        
             | PutinPoopin wrote:
             | [dead]
        
           | SkyMarshal wrote:
           | Also, one of Ma's last public appearances was at an American
           | conference, maybe TechCrunch but I'm not sure, where he said
           | in an on stage interview something to the effect of, "I'm not
           | afraid of the CCP", in relation to recent revelations he was
           | a CCP member. Then he got disappeared shortly after. He was
           | really clueless about what kind of org he was dealing with.
        
             | RobotToaster wrote:
             | Given China's, (and to some extent, Asia's), obsession with
             | face, his actions do all seem pretty clueless. I wonder,
             | could it all be part of some performance?
             | 
             | The fact that they let Ali "voluntarily" restructure, and
             | save face from having it be enforced, is interesting on
             | it's own. I'm not really sure what to make of it.
        
               | twblalock wrote:
               | We don't need to resort to cultural tropes like "face" to
               | explain this.
               | 
               | This is about power and control. The Communist party does
               | not want any other centers of power or control to emerge
               | which might challenge the party. Jack Ma, and the tech
               | industry in general, was emerging as such a power. Now
               | that problem has been taken care of.
        
               | carschno wrote:
               | Genuine question: is there any evidence that "Asia's
               | obsession with face" has actual impact on daily business,
               | or is it really just a cliche?
        
               | throwawaymaths wrote:
               | It's only a cliche, because westerners are often just as
               | obsessed with face, though having a foot in two cultures
               | there are a few big places where the difference is
               | noticable:
               | 
               | US (and by extension NATO, doctrinally) military is very
               | unconcerned with face in the small. For (real example)
               | anyone on the bridge of a US ship can report to the
               | captain of a ship that the ship is out of position (for
               | an exercise). A buddy almost got walloped on the bridge
               | of a ROK ship for doing that. They didn't because he was
               | American and that's what exchanges are for.
               | 
               |  _some_ cultures in the west _tend_ to value bluntness
               | over face in the small.
        
               | KerryJones wrote:
               | Jack Ma is part of the evidence -- there are others who
               | have said the same thing. There are many examples of less
               | notoriety of people saying bad things about CCP and then
               | "disappearing" (many government officials).
        
             | hatsunearu wrote:
             | Jack Ma truly is clueless in general. There was a talk
             | involving him and Elon Musk and it somehow was Elon coming
             | out as the eloquent one in that conversation.
        
               | bakuninsbart wrote:
               | I don't think very highly of Jack Ma, but eloquence for
               | non-native speakers should be judged very differently,
               | especially for someone coming from a language very far
               | away linguistically.
        
               | iforgotpassword wrote:
               | Exactly, Ma was kinda struggling to get a train of
               | thought across linguistically and half the time when Musk
               | interrupted him he was rather making fun of some poor
               | choice of words and being like "lol whatever" than trying
               | to actually engage in a conversation.
               | 
               | And I guess now with the Twitter shitshow Musk doesn't
               | exactly look like a genius either.
        
               | kranke155 wrote:
               | Pretty much impossible to defend Elon's Twitter tenure.
               | Can't think of a single thing he did that made that
               | company more valuable.
        
               | andy_ppp wrote:
               | I always do wonder about the reverence shown to
               | billionaires around here, given the quite frankly
               | ludicrous purchase of Twitter ($44bn!!!) and what has
               | happened afterwards I really am not convinced they aren't
               | just as able as the rest of us.
        
               | midasuni wrote:
               | Americans tend to equate wealth with ability and set
               | aside luck, everyone is a temporarily embarrassed
               | millionaire.
               | 
               | Musk certainly used to have decent business accuumin - he
               | hit it big several times, that's not just luck. From all
               | accounts he's a half decent engineer too, which is rare
               | in many CEO levels.
               | 
               | However his behaviour over the last 3 years has been very
               | surprising. He seems to be less interested in the tech
               | and more in the politics, which is a shame.
        
               | FpUser wrote:
               | >"less interested in the tech and more in the politics"
               | 
               | Once you have x dollars and own companies government is
               | aware of it comes as no surprise
        
               | munificent wrote:
               | _> he hit it big several times, that's not just luck._
               | 
               | The odds of any given entrepreneur getting lucky several
               | times in a row is very small.
               | 
               | Given a large enough entrepreneurs, the odds of one of
               | them getting lucky several times in a row gets very
               | large. We just don't see all the ones who tried and
               | failed, or succeeded once or twice and fizzled out.
               | 
               | I don't doubt that Musk has some skills and appropriate
               | personality traits as well, but luck is likely the
               | dominating factor.
        
               | mschuster91 wrote:
               | > However his behaviour over the last 3 years has been
               | very surprising. He seems to be less interested in the
               | tech and more in the politics, which is a shame.
               | 
               | He's a narcissist. People used to worship him - and given
               | just how hard Tesla kicked the butts of the ICE car
               | industry or how SpaceX just completely obliterated
               | Boeing/ULA, rightfully. But let's be honest, both are
               | mainstream now and don't get as much attention as they
               | once did... and then, his wife leaves him for Chelsea
               | Manning and one of his children comes out as trans and
               | sticks the finger to him.
               | 
               | A bad enough combination of events for normal people to
               | handle (getting dumped by a partner is one of the chief
               | causes that sends people into depression and other mental
               | health disaster loops), but for a narcissist with no real
               | support structure to fall back on _and_ already on the
               | edge? No surprise he blames everyone but himself and
               | allies with those that are against those whom he feels
               | "wronged" by: the far-right.
               | 
               | Note, this doesn't excuse _any_ of his actions. He needs
               | to come out of this rabbit hole either by himself or,
               | when he finally hits rock bottom and commits something
               | that he can 't just buy himself out of prison, by the
               | government.
        
               | flangola7 wrote:
               | I seriously doubt his engineering abilities, but I'll
               | ignore that.
               | 
               | One thing he's demonstrated from the beginning is a stark
               | undersupply of emotional intelligence. There are noises
               | that come out of his mouth that my 15yr old would roll
               | her eyes at for being too self-centered and immature.
        
               | s1artibartfast wrote:
               | There's a fine line between lack of emotional
               | intelligence and simply not caring to placate others.
               | 
               | The two are not the same.
               | 
               | It is like calling someone an idiot because they won't do
               | what you want and ignoring what they want.
               | 
               | You have to admit that it may not be a priority for Elon
               | to maintain his reputation with you in your 15 year old
        
               | philipov wrote:
               | People thought he had some engineering skills, until he
               | took over Twitter and started talking about all the
               | idiotic engineering decisions he was making.
        
               | robocat wrote:
               | Musk could simultaneously be a numpty at Twitter and a
               | superb engineer at SpaceX.
               | 
               | You imply that skills are context-free black or white -
               | that is a terrible way to think about people or the world
               | IMHO. And you can't ignore changes over time either.
        
               | pedrosorio wrote:
               | > business accuumin
               | 
               | I am guessing this couldn't have been just luck either.
        
               | FormerBandmate wrote:
               | The Twitter purchase really just shows how rich and
               | apathetic Elon Musk is. A Ferrari is a difficult to
               | impossible purchase for almost all of us, but rappers buy
               | them for no reason and then trash them all the time.
               | Twitter is that on a much larger scale, and Musk is
               | treating it the same way because he doesn't care.
               | 
               | You don't build the first successful auto startup in 70
               | years and revitalize the space industry by being a moron.
               | Everything Elon Musk has ever done with Twitter
               | (including the 2018 SEC debacle) has been the dumbest
               | shit possible, however
        
               | andy_ppp wrote:
               | Both SpaceX and Tesla nearly went bankrupt multiple
               | times, we could just as easily be talking about an Elon
               | Musk who had every advantage (government contracts, huge
               | tax breaks and a fantastically wealthy family) and still
               | failed. Maybe this is a case of fortune favoring the bold
               | and I admire his perseverance/grit/marketing ability a
               | lot. I've never heard him explain anything technical in
               | any interview he's ever given and instead just starts
               | behaving autistic if he's asked any detail about things.
               | When he does stray into technical subjects like Twitter
               | code he seems to talk nonsense that any engineer who has
               | worked at a Twitter scale company would laugh at.
        
               | cmh89 wrote:
               | He's really good at selling an image, which is what
               | pushed Tesla ahead of other car makers. His whole 'Tony
               | Stark' image is basically cat nip to tech bros and made
               | Tesla cool and desirable.
               | 
               | I think you are spot on. There are dozens of 'Elon Musks'
               | out there we don't notice or talk about because they
               | didn't win. Someone was going to win in the space, the
               | government was heavily incentivizing electric car
               | purchases. Musk was the best salesmen and here we are.
               | That doesn't make him a tactical genius.
        
             | s1artibartfast wrote:
             | I think characterizing it as Clueless make some overly
             | broad assumptions on Ma's motivations.
             | 
             | It could be as simple as he disagrees with the CCP policy.
             | 
             | For example, we don't typically look at human rights or
             | anti-war protesters and call them Clueless, even when
             | governments Crackdown on them
        
               | insane_dreamer wrote:
               | Clueless in understanding the consequences of disagreeing
               | with CCP policy. He should have known what would happen.
        
             | toyg wrote:
             | One doesn't need to be clueless in order to lose a power
             | struggle. He might have been betrayed, he might have
             | overestimated the resources he could fully count on, he
             | might have simply been backing a faction in the party that
             | ended up losing. Xi Jinping went as far as kicking out of
             | the public congress a previous president, which was
             | unprecedented; who knows what else he's capable of.
        
               | re-thc wrote:
               | Correct, he is/was backed by a different faction.
               | 
               | Most startups of that era are.
        
               | esafak wrote:
               | Which faction? I am curious.
        
               | [deleted]
        
               | rvnx wrote:
               | The capitalists ?
               | 
               | Seems like the arch-enemy of communists
        
               | SkyMarshal wrote:
               | From what I've both read and experienced on a brief trip
               | to Shanghai, it seems there are two main factions - the
               | Beijing faction and Shanghai faction. The latter is more
               | capitalist and chill, the former more authoritarian. It's
               | probably more complicated though, with multiple sub
               | factions around different leaders in the CCP. Maybe
               | someone with deeper knowledge can elaborate.
        
               | viewtransform wrote:
               | This writeup by a former CCP member now living in exile
               | explains the current functioning of the CCP.
               | 
               | The Weakness of Xi Jinping: How Hubris and Paranoia
               | Threaten China's Future https://archive.is/d9OsU
        
               | rfoo wrote:
               | There's https://en.wikipedia.org/wiki/Tuanpai and
               | https://en.wikipedia.org/wiki/Shanghai_clique. And of
               | course a third one - Xi organized his own clan.
        
               | littlestymaar wrote:
               | > One doesn't need to be clueless in order to lose a
               | power struggle.
               | 
               | But one has to be clueless in order to start a power
               | struggle with Xi. He's not like the old school CCP head
               | at all (not even Mao), he's much more of an all-powerful
               | tyrant like Stalin was. Starting a power struggle against
               | such a ruthless despot _is_ clueless.
        
               | SkyMarshal wrote:
               | But that's the problem - the risk of losing a power
               | struggle in a democracy with rule of law, separation of
               | powers, an independent court system, and regular
               | elections is vastly different from the risks of losing a
               | power struggle in the CCP, which controls all branches of
               | government, law enforcement, and the military and is
               | accountable to no one.
               | 
               | The former has a limited downside, the latter unlimited.
               | Whatever the Central Committee decides happens to you is
               | law with no recourse - execution, disappearing and re-
               | education, etc. - and law enforcement and the courts are
               | just there to justify it after the fact.
               | 
               | It's clueless to publicly mouth off about the CCP if
               | you're a high-profile influential Chinese billionaire and
               | therefore a potential threat to the current ruling
               | faction, or some future ruling faction when there's
               | turnover. Discretion is definitely the better part of
               | valor there.
        
               | ethbr0 wrote:
               | I always figured that's why high-level power struggles
               | were so constant and severely fought in totalitarian
               | regimes.
               | 
               | If the downside is unlimited then you do whatever it
               | takes to win, always.
               | 
               | And if there isn't currently a struggle then you prepare
               | for the next one, constantly.
               | 
               | Or in other words, you only spend a small portion of your
               | total ability and time on the job, because you have to
               | constantly expend effort on protecting your back.
        
               | SkyMarshal wrote:
               | I have that impression too. Without having directly
               | experienced it myself, it seems like a hellish system.
               | Though it does at least seem like getting "purged" isn't
               | always final, and that execution is the last choice.
               | 
               | Xi Jinping himself got purged in his youth and spent that
               | time living and working in the countryside and building
               | his 'man of the common people' cred, then made it back
               | into the CCP's favor later. Though Xi was a princeling,
               | his father was one of Mao's inner circle, so he might
               | have been untouchable and only at risk of exile and not
               | actual execution for that reason, unlike most other CCP
               | members and Chinese people.
               | 
               | And to be fair, US politicians spend most of their time
               | fundraising for their next campaign, so in terms of total
               | ability and time spent on the job it's probably similar
               | in both systems. But losing a power struggle in the US
               | just means losing your election, and trying again in the
               | next one. In the CCP there's a wider range of
               | consequences.
        
             | alimov wrote:
             | Reuters reported on Jack Ma's return to China 7 days ago.
             | The title is: Jack Ma returns to China as government tries
             | to allay private sector fears
        
             | [deleted]
        
           | TobTobXX wrote:
           | Completely OT:
           | 
           | > Over the next few months the government [...] disappeared
           | Jack Ma.
           | 
           | Huh, I've never seen "disappear" being used as a transitive
           | verb. I kinda like it and I think I'll put it in my language
           | toolbox.
        
             | SkyMarshal wrote:
             | It's quite common when talking about oppressive
             | authoritarian regimes.
             | 
             | https://www.google.com/search?q=%22disappeared%22
        
             | MengerSponge wrote:
             | It's a powerful phrase, associated with oppressive regimes.
             | It should be used with the same level of care as "pogrom"
             | or "reeducation".
        
             | mc32 wrote:
             | Yeah, it's informal but it used mostly for when a
             | government illegally detains someone, often incommunicado
             | --though historically in Latin American countries
             | "disappearances" were a euphemism for government
             | paramilitary forces (or revolutionary forces) taking
             | someone behind the shed and extrajudicially executing them
             | or in lesser cases locking them up in secret prisons. The
             | choice of word probably stems from the stereotypical middle
             | of the night night unwitnessed arrest. (so and so was
             | supposed to come home at 8 but never came back)
        
               | the_af wrote:
               | In Argentina, one of the countries (along with Chile)
               | where the term "desaparecido" (disappeared) was coined in
               | the 70s, it means specifically:
               | 
               | Government forces (not revolutionaries) which use either
               | their official militaries/police (often) or their secret
               | police (less often) to detain individuals without
               | recourse to the law, then take them to illegal detention
               | centers where they are tortured and eventually killed (in
               | Argentina, some detainees were simply drugged and dropped
               | alive to the Rio de la Plata river, where they drowned --
               | our so called "flights of death" -- and others sometimes
               | simply shot). The key thing that sets "disappeared"
               | people aside from other ways of execution is that there
               | is no official acknowledgement of their fate, and their
               | friends and family are never truly sure of how they died
               | unless their mortal remains are ever found by chance.
               | 
               | If this sounds horrifying, always remember our militaries
               | in Latin America were trained in these tactics by the US
               | government, in things like the School of the Americas
               | [1], under the guise of "learning how to fight
               | insurgency".
               | 
               | [1] https://en.wikipedia.org/wiki/Western_Hemisphere_Inst
               | itute_f...
        
               | mistrial9 wrote:
               | nice try to pin the blame on the USA - of course USA is
               | guilty, but also, who chooses this path.. You cannot say
               | that the people who do this themselves, to their own, are
               | not responsible.
        
               | officeplant wrote:
               | We (The USA) are incredibly guilty of a lot of poor
               | actions and choices in South America. Including active
               | funding & training of multiple regime leaders over
               | decades.
               | 
               | It's hard to choose a good path if a major world power is
               | making sure all the good ones get shut down.
        
               | mistrial9 wrote:
               | agree fully - that is why it is crucial that we have
               | checks and balances on uniformed services, public process
               | and the ability to speak out here. There were long and
               | serious protests about the School of the Americas by US
               | citizens in public. Here in this international
               | discussion, it is not complete or wholly accurate IMHO to
               | say "the USA did it" without knowing some context.
        
               | the_af wrote:
               | > _it is not complete or wholly accurate IMHO to say "the
               | USA did it" without knowing some context_
               | 
               | But this isn't what I said. I definitely didn't say "the
               | USA did it". What I said was:
               | 
               | > _always remember our militaries in Latin America were
               | trained in these tactics by the US government_
               | 
               | Which is both fair and accurate. The US was _definitely_
               | involved one way or the other in most Latin American
               | dictatorships of that era, enabling atrocities under the
               | guise of fighting communism and insurgencies in their
               | "back yard".
        
               | mistrial9 wrote:
               | >> We (The USA) are incredibly guilty of a lot of poor
               | actions and choices in South America.
               | 
               | > agree fully
               | 
               | .. The US was definitely involved one way ..
               | 
               | how are we not in agreement now?
        
               | the_af wrote:
               | So you basically understand the US is guilty, but somehow
               | assumed I was saying the people on Latin America who used
               | this training to murder their own people are innocent?
               | 
               | Of course it requires two things: murderers and those
               | willing to train and support them.
               | 
               | PS: "nice try" my ass. This piece of history I'm telling
               | you is widely acknowledged, this is not some kind of
               | conspiracy theory.
        
               | mistrial9 wrote:
               | I apologize if I offended you or others, it is an
               | upsetting chapter in history yes.
        
               | the_af wrote:
               | Apology accepted.
               | 
               | To be clear: I do consider our dictators and murderers as
               | _worse_ people than those who trained them in the School
               | of the Americas. Because, like you rightly put it,  "who
               | chooses this path?".
        
               | CPLX wrote:
               | To be even more specific the phrase is most associated
               | with the dirty war and Argentina's military dictatorship
               | and their habit of taking people they didn't like up in
               | helicopters and pushing them out a few miles off shore
               | into the ocean. They just vanished without a trace.
               | 
               | They were called los desaparecidos ("the disappeared")
               | and for years once a week their mothers would silently
               | carry photos of them and walk in circles at the Plaza De
               | Mayo in Buenos Aires.
        
               | the_af wrote:
               | The Madres de Plaza de Mayo still do their walk today.
        
       | maxwell wrote:
       | Great move. This will increase local competition and wages,
       | diversify ideas and design, and make shareholders more money than
       | as a single entity. As with Standard Oil and AT&T. The U.S.
       | should continue investigating splitting up Alphabet, Apple, Meta,
       | and Microsoft.
        
         | ShaurAsar wrote:
         | Some believe that breaking up these companies would promote
         | healthy competition, while others argue it could harm
         | innovation and limit consumer choice. It is up to policymakers
         | and regulators to carefully consider the potential benefits and
         | drawbacks before making any decisions.
        
           | maxwell wrote:
           | Who believes this could harm innovation and limit consumer
           | choice?
        
             | henry2023 wrote:
             | Maybe 40 to 80 tech executives
        
         | eunos wrote:
         | Ironically isnt that this move just make Alibaba governance
         | just follow Alphabet model?
        
         | fumblebee wrote:
         | Honest question: why was this downvoted? To me it seems totally
         | reasonable that:
         | 
         | > The U.S. should continue investigating splitting up Alphabet,
         | Apple, Meta, and Microsoft.
        
           | duxup wrote:
           | To me the comment isn't relevant.
           | 
           | It's not clear China's government actions are "really" for
           | the purposes as that comment indicates...
           | 
           | And frankly the list of companies is borderline nonsensical.
        
           | wincy wrote:
           | I disagree, and think it would be harmful. I think we'd be
           | better off splitting up the US government into smaller pieces
           | but everyone loses their mind when I suggest it.
        
             | maxwell wrote:
             | The way to do that in a manner that doesn't simply empower
             | multinational corporations, is to uncap the House of
             | Representatives by repealing the Reapportionment Act of
             | 1929.
             | 
             | https://en.wikipedia.org/wiki/Reapportionment_Act_of_1929
             | 
             | https://twitter.com/UncapTheHouse
        
             | Spivak wrote:
             | Because without also limiting the size and power of private
             | entities you're just arguing for corporatism with extra
             | steps.
             | 
             | If you force government to be smaller and less powerful
             | than corporations then corporations become government.
        
             | ipaddr wrote:
             | Like states or regions or cities? You are not the first to
             | have this idea. It was a founding principle for the US
        
               | throwayyy479087 wrote:
               | Agreed, and local power tends to be much more responsive
               | and accountable than the Feds. It's one of the best parts
               | of the system (the Senate is the worst imo)
        
             | FpUser wrote:
             | The US government is already split. You want country ran by
             | companies? As much as I do not like politicians I think
             | companies running the country would do much worse.
        
         | deeviant wrote:
         | And this, is how tankies are born.
        
           | [deleted]
        
         | quonn wrote:
         | How would you split Apple? How would you split Meta (would you
         | start charging for WhatsApp)?
        
           | bioemerl wrote:
           | Apple into hardware and software.
           | 
           | Microsoft into OS and other software and cloud.
           | 
           | Amazon into cloud and web store(s).
           | 
           | Google into ads and web software that serves ads.
        
             | mongol wrote:
             | Why not split Apple into hardware and hardware? Ideally two
             | companies that start competing from equal starting point.
        
             | vdfs wrote:
             | Microsoft OS is too powerful, split it into Kernel and user
             | space
        
               | simion314 wrote:
               | That would be a competitive OS, you get a good kernel
               | with good hardware support and you can put a decent DE on
               | top of it like KDE.
        
             | quonn wrote:
             | It doesn't make sense to split Apple into hardware and
             | software since the integration and simplicity that comes
             | from it is the very thing that makes Apple unique.
        
               | pulse7 wrote:
               | This is nothing new. IBM was required to sell software
               | separate from their hardware...
        
               | nindalf wrote:
               | You asked for ideas. You never specified that they should
               | be workable or logical.
        
               | listenallyall wrote:
               | Apple licensed it's MacOS back in the mid-90s to third-
               | party hardware manufacturers. If it was forced to by the
               | government, I imagine it could do so again.
        
               | seanmcdirmid wrote:
               | It wasn't forced to by the government. The CEO at the
               | time thought it was a good idea.
        
               | bioemerl wrote:
               | Unfortunately this is also the source of all their
               | monopolistic behavior.
               | 
               | Apple hardware should be incentivized to make great
               | hardware for any operating system.
               | 
               | Apple software should be incentivized to sell to many
               | manufacturers and also to not obey apple hardware's
               | demands for locks to prevent things like the replacement
               | of batteries.
               | 
               | Their union could be a great thing, but apple decided to
               | use it to be a bunch of monopolists, so your break them
               | up like all the others.
        
               | crop_rotation wrote:
               | Great hardware for any OS sounds good in theory but not
               | gonna happen in practice. When 10 hardware providers are
               | supplying hardware for an OS, the hardware becomes a
               | commodity, and the focus tends to go to cheapest for a
               | given spec. You can see the same phenomenon in Windows
               | and android hardware. If you supply a premium hardware
               | for a premium price in a commodity market, you will just
               | not have any market share.
               | 
               | People buy apple hardware for the integrated experience.
               | e.g. I am not gonna buy a Dell running macOS or a Mac
               | running Windows11.
        
               | bioemerl wrote:
               | There are lots of windows laptops with quality hardware.
               | 
               | There are cheap ones too, but that's the whole point of
               | choice.
        
               | seanmcdirmid wrote:
               | Then why don't people buy those over apple products? If
               | you change Apple into that, I would be sad because now
               | you've taken away a choice I had before.
        
               | rejectfinite wrote:
               | >Then why don't people buy those over apple products?
               | 
               | But they do lil bro/sis
               | 
               | Lenovo Thinkpad, Dell Presicion/Latitude or HP Elitebook
               | for companies aint cheap. Gaming laptops. Android phones,
               | the top ones.
               | 
               | etc
        
               | kkarakk wrote:
               | tbf none of those have maintained quality for as long as
               | apple have. since iphone 1 apple has maintained a
               | superlative quality of phone - nothing on android side
               | comes anywhere close for the same amount of time.
               | 
               | i prefer just being able to say "buy an iphone/macbook"
               | whenever i think what has quality rather than having to
               | research options for 3 hours on what's the current state
               | of the art in tech.
        
               | rejectfinite wrote:
               | There is a reason why https://buyersguide.macrumors.com/
               | exists.
               | 
               | Ive seen plenty of people buy a current Mac just for
               | Apple to relesase something new 2 weeks later.
               | 
               | Also, for phones atleast, Samsung Galaxy has been pretty
               | consistent in quality.
        
               | smoldesu wrote:
               | > rather than having to research options for 3 hours
               | 
               | Right. Just buy a Macbook...
               | 
               | Except, don't get the 12". _That_ one was an overheating
               | flop, should have never made it to market (nor the i9 16
               | " Pro). Also, avoid the 2016-2019 ones with the butterfly
               | keyboard. While you're at it, don't get the 13" Pro
               | either, since it's a bit of a scam for the touchbar that
               | wasn't that big of a hit. For all of these machines
               | you'll want to upgrade them from the base memory to 16gb
               | to make them last longer, and if you don't upgrade the
               | storage then there's a good chance you'll only get single
               | module speeds, which is significantly limited.
               | 
               | Simple!
        
               | ImPostingOnHN wrote:
               | it's an interesting question (whether Apple's
               | monopolistic behavior has produced any good), but
               | entirely orthogonal to the underlying question, whether
               | Apple is behaving monopolistically (they are).
        
               | seanmcdirmid wrote:
               | Apple has a monopoly on Apple products, and even though
               | there are plenty of non-Apple products to buy, they are
               | behaving like a monopoly?
        
               | ImPostingOnHN wrote:
               | yes, they are engaging in monopolistic behavior, which as
               | mentioned above, does not require them to pass any
               | particular threshold for being a monopoly
               | 
               | society has decided that some behaviors are in and of
               | themselves bad, whether or not said threshold of yours is
               | surpassed (for example monopolistic behaviors)
        
               | seanmcdirmid wrote:
               | I just want to avoid going back to the time before Apple
               | products were nice and relatively affordable, I hated
               | buying a crappy Windows PC every other year and never
               | being satisfied with it. Apple has transformed the entire
               | industry twice in my lifetime, and I get really nervous
               | when people say they should be forced to be just like
               | another PC maker, and I should be forced to live again
               | under a market that I absolutely loathed.
        
               | smoldesu wrote:
               | Look, Apple Silicon is neat, but you've lost the script
               | if you want to claim it "changed the entire industry".
               | The iPhone is an example of an industry-changer - actual
               | industries changed here. Apple Silicon hasn't really
               | changed the PC market - ARM is still a sideshow ISA for
               | the Windows and Linux desktop alike. The market share
               | hasn't changed dramatically. The line between people who
               | want PCs and who want Macs is roughly the same as it was
               | a decade ago.
               | 
               | > I get really nervous when people say [...] I should be
               | forced to live again under a market that I absolutely
               | loathed.
               | 
               | Well, that's the problem with walled gardens. If your
               | platform exploits a tragedy of the commons to make money,
               | society will probably eventually realize they're being
               | scammed and demand fairer systems. A money-ocracy is not
               | a solution to these problems, it's a clever guise to
               | drain your wallet and make you think that life is
               | improving because you spend money and buy products.
        
               | seanmcdirmid wrote:
               | > Look, Apple Silicon is neat, but you've lost the script
               | if you want to claim it "changed the entire industry".
               | 
               | Huh? I'm only referring to the Apple 2 (when Apple first
               | changed the personal computing industry) and the 00s,
               | when macs finally became fast and stable enough to be
               | considered a decent value (one can argue it was the
               | original iMac, but OS/X and then the first intel macbooks
               | is when Macs really started making sense value wise).
               | Apple silicon, a recent innovation, hasn't really changed
               | the personal computing industry much.
               | 
               | > If your platform exploits a tragedy of the commons to
               | make money, society will probably eventually realize
               | they're being scammed and demand fairer systems
               | 
               | I don't think Apple is doing this. They are selling a
               | decent product, which for some inexplicable reason other
               | hardware/software producers can't seem to replicate. They
               | seem to have a monopoly on "not sucking" but that's about
               | it.
        
               | ImPostingOnHN wrote:
               | it's an interesting topic (whether Apple's monopolistic
               | behavior has produced any good), but again, entirely
               | orthogonal to the underlying question, whether Apple is
               | behaving monopolistically (they are).
               | 
               | in the amount equal to how much you like any such
               | benefits, other people dislike the downsides of
               | monopolistic behavior, so we decided that it's bad even
               | if maybe some good comes with the bad
        
               | seanmcdirmid wrote:
               | I just disagree that Apple is behaving monopolistically.
               | Dictionary definition of monopolistic behavior:
               | 
               | > having or trying to have complete control of something,
               | especially an area of business, so that others have no
               | share: She did not consider the fine a sufficient
               | deterrent against monopolistic practices by big
               | producers. The company is accused of monopolistic
               | behavior.
               | 
               | Apple has completely control over Apple products and
               | services, but not of the entire market, since there are
               | plenty of other choices available in every market
               | category they operate in. People who say they dislike
               | Apple for its monopolistic behavior tend to seem to
               | dislike Apple in general, and would rather not anyone buy
               | their products, rather than just making the personal
               | choice to not buy their products (because they indeed
               | have many other choices and so can avoid buying Apple
               | products and services).
        
               | ImPostingOnHN wrote:
               | your post does a good job of explaining how Apple's
               | behavior is monopolistic, by that very definition, even
               | despite not controlling the entire market: the
               | "something" need not be the entire market
               | 
               | as for like vs dislike, the company isn't important
               | enough for me to form such personal opinions about it,
               | they're simply _a_ company engaging in monopolistic
               | behavior just like any other company engaging in
               | monopolistic behavior
        
               | seanmcdirmid wrote:
               | Again, the definition is clear. By the definition
               | generalized in that way, any company building a
               | proprietary system would be guilty of monopolistic
               | behavior. If that's the case, then I guess it is a
               | meaningless distinction anyways, and really not my worth
               | much of my time to ponder either.
        
               | crop_rotation wrote:
               | There are but they do not compare to a mac. The point of
               | choice for me is to be able to buy an integrated
               | experience.
        
               | mynameisvlad wrote:
               | > Unfortunately this is also the source of all their
               | monopolistic behavior.
               | 
               | How can you be showing "monopolistic behavior" when
               | you're neither the only player in the game, nor the
               | biggest?
        
               | bioemerl wrote:
               | If you want until they're the only player you're way way
               | too late and huge damage has already been done.
        
               | mynameisvlad wrote:
               | That both doesn't answer my question nor is it actually
               | true.
               | 
               | In fact, splits almost always happen _when it's actually
               | a monopoly_ not some vague hand-wavy goal-shifting
               | "monopolistic behaviors".
        
               | bioemerl wrote:
               | Splits in general rarely if ever happen at all, let alone
               | when they should.
               | 
               | Our antitrust over the last few years is crazy lacking.
               | 
               | Wouldn't you want the burst of innovation and competition
               | before the five to ten years of status quo monopoly if
               | you wait to act?
        
               | mynameisvlad wrote:
               | Cute strawman.
               | 
               | That would also extend to practically every company out
               | there unless we can somehow accurately predict the
               | future.
        
               | namdnay wrote:
               | Apple's phone amrket share is 20%, one point above
               | Samsung. They're no way near a monopoly
        
               | kelipso wrote:
               | Apple's US phone market share is 50% and definitely way
               | higher in the high end phone market share.
        
               | ImPostingOnHN wrote:
               | monopolistic behavior doesn't require a monopoly
        
               | maxwell wrote:
               | They use that line of argument specifically to avoid
               | antitrust scrutiny.
        
             | paulcole wrote:
             | Why not Apple into Products and Services?
             | 
             | Products being - for example products being iPhone and iOS
             | and services being iCloud, Apple Music, Apple TV+, etc.
        
               | jackson1442 wrote:
               | I actually really like that. Would force a (semi?-)public
               | compatibility layer that allows other competitors to
               | enter the space. If you want to back your iPhone up to
               | Google Drive, you do you.
               | 
               | App Store would also likely end up in Services, which
               | would also open up multi-app store compatibility. It's
               | almost too good of a solution.
        
             | drstewart wrote:
             | This just feels like completely arbitrary divisions based
             | on what sounds good as opposed to any guiding logic around
             | defining a monopoly and breaking it down along systemic
             | lines. Populism, basically.
        
             | contravariant wrote:
             | I'd say you could split Google into _at least_ , cloud,
             | ads, search and workspace (including mail).
        
               | maxwell wrote:
               | Don't those all lose a lot of money, except ads?
        
               | contravariant wrote:
               | All except search are paid services so you wouldn't think
               | so.
               | 
               | And search would probably make more money if they could
               | sell ad space to other companies. And by selling
               | information on popular search terms for particular links.
        
           | maxwell wrote:
           | I probably wouldn't break up Apple myself, but would require
           | lifting the ban on other web browser engines and app stores
           | on all operating systems.
           | 
           | For Alphabet and Meta, I would likely pursue criminal charges
           | for conspiracy to fix prices in online ad auctions:
           | https://en.wikipedia.org/wiki/Jedi_Blue
        
           | georgeecollins wrote:
           | How to split Meta: Facebook, Instagram, WhatsApp.
           | 
           | Easy! Hard part: Who gets Occulus?
        
           | izacus wrote:
           | Apple Hardware, Apple Licensed OSes, Apple Online Services,
           | Apple Financial Services (apple card & apple pay & co), Apple
           | News Services, Apple Mapping Services.
           | 
           | Think of everything that Apple (Meta, Google) do, think on
           | which components would benefit from having startups replace
           | and distrupt them and then break them up on those seams while
           | forcing them to allow competition between their fragments
           | (e.g. iPhone with Android OS, iOS on Microsoft phone
           | platform, MacBook M1 with ARM Windows, iOS iPhone with Google
           | Pay, etc. etc.).
        
             | ginko wrote:
             | Apple Hardware I'd split further into silicon business and
             | device OEM. Also split out the headphone business.
        
             | bufferoverflow wrote:
             | Which of them will own apple.com?
             | 
             | Which of them will own Apple trademark?
             | 
             | Which of them will own Apple logo?
        
               | the_mitsuhiko wrote:
               | For a point of reference here have a look at how many
               | independent companies share the "Sparkasse" or
               | "Raiffeisen" trademarks and Logos on Europe.
        
               | izacus wrote:
               | We can compromise and say "none" :P
        
               | sct202 wrote:
               | There will probably be trademark usage agreements, like
               | with companies who split themselves like Motorola
               | Solutions and Motorola Mobility (owned by Lenovo) both
               | license the Motorola trademark from Motorola Trademark
               | Holdings, LLC unclear who owns the holding company.
        
               | toyg wrote:
               | Trivialities that antitrust regulations already cover. It
               | would not be the first time a company has been broken up.
        
           | true_religion wrote:
           | WhatsApp, Instagram, Facebook, and Oculus all used to be
           | separate companies. They can easily become so again.
        
           | bilbo0s wrote:
           | This is our problem as techies, we throw out this stuff with
           | very little idea of the legal framework in place around
           | antitrust. Even smaller ideas around precedent and the legal
           | reasoning behind those precedents. I know everyone doesn't
           | want to go to law school, but we have to at least understand
           | that we can't go into a court and make stuff up.
           | 
           | Who can reasonably be broken up? On what reasonable basis?
           | 
           | Well,
           | 
           | Perhaps Meta?
           | 
           |  _Maybe_ Microsoft?
           | 
           | Alphabet _definitely_.
           | 
           | Apple? They'll laugh us out of court.
           | 
           | If we want these changes, we're going to have to advocate for
           | changes in the fundamental ideas behind antitrust itself.
           | Technology has outstripped the current regulatory
           | environment's ability to keep it in order. And we don't seem
           | to want to admit that. We just keep crying that the law won't
           | act. Well, that's because no laws are being broken. And the
           | politicians and the tech bigs are desperate to ensure that no
           | one figures that out. They'll keep feeding us crumbs so that
           | we don't do the dangerous thing and ask for changes in law.
        
           | soperj wrote:
           | WhatsApp used to charge, but really what they'd do is just
           | charge facebook & whoever else for the data they're sharing.
        
             | robopsychology wrote:
             | Did they actually charge though? I remember hearing about
             | that but it's been my sole method of messaging for years
             | and I never remember setting up payments with them
        
               | fnomnom wrote:
               | yeah they did. 0,99EUR was the purchase of my whatsapp
               | back then
        
               | gorbypark wrote:
               | IIRC it was 99 cents per year, and you could just keep
               | "skipping" the payment. I don't think they ever cut
               | anyone off from using it for not paying. A little bit
               | like shareware (or nagware?).
        
             | quonn wrote:
             | I think they charged 1 Euro when you bought the app. I
             | doubt that covers the costs to keep it running.
        
         | a-user-you-like wrote:
         | The traditional definition of a monopoly is the government
         | issuing a grant for a business to operate exclusively. These
         | ought not to be allowed.
         | 
         | If there is no subsidy or special grant, it's not a monopoly.
         | 
         | Often these days there are subsidies or unfair grants given in
         | some way, and the solution is to eliminate the subsidy or
         | grant.
        
           | kevinwang wrote:
           | Never heard this before. Source?
        
             | kevin_thibedeau wrote:
             | Royal endorsements are a monopoly on services to the crown.
        
         | re-thc wrote:
         | No it won't. It will reduce competition. Are you going to now
         | compete with the official government supported entity?
        
           | [deleted]
        
           | [deleted]
        
       | crop_rotation wrote:
       | The media and HN seem to be seeing this as a AT&T style breakup,
       | which is not. It is starting with an Alphabet style
       | restructuring, which sounds big in theory but nothing big might
       | happen in practice. The biggest unit (Taobao/Tmall) will be fully
       | owned by Alibaba and would not seek any external investment
       | (Taobao/Tmall is responsible for >70% of their profits). The new
       | Unit CEOs were not even invited to speak at the announcement.
       | Even if all the new Units sell 10-20% stock to the market, would
       | it really change too many things? It will all depend on how the
       | CCP wants the breakup to play out.
        
         | eloff wrote:
         | Also the reason the stock jumped on the news is the company is
         | potentially worth more this way, by breaking out higher margin
         | / faster growth units from the big retail business. A lot of
         | Amazon investors would love to see the same with AWS.
         | 
         | It sounds silly since nothing really changes, but it has to do
         | with the way investors calculate the value of public companies.
        
           | ttobbaybbob wrote:
           | a basket of options is more valuable than an option on a
           | basket
           | 
           | https://medium.com/@kentbeck_7670/decisions-decisions-or-
           | why...
        
           | crop_rotation wrote:
           | This sounds good in theory but might not work in practice.
           | None of them are profitable and depended on Tmall/Taobao for
           | growth. Turning to the public markets would require
           | sacrificing growth for profitability. There might be many
           | other inter dependencies which might turn out costly to
           | unwind.
           | 
           | What you are saying might be how it turns out in the end, but
           | it is not a given.
        
             | pclmulqdq wrote:
             | Endless growth of unprofitable services is what has given
             | us crazy market distortions in the past. It's what gave us
             | things like Groupon, Doordash, and Uber, too. Growth isn't
             | always a good goal.
        
             | eloff wrote:
             | Yes, nothing is a given when it comes to the stock market.
        
       | endisneigh wrote:
       | It's interesting to contrast China's approach of not allowing
       | business to operate within the plane of power in which the
       | government does, vs. the United States, which has companies whose
       | power is certainly on the level of many state governments.
        
         | duxup wrote:
         | To me the complicating factor is "why". I'm not sure why China
         | as a government makes the calls it does.
         | 
         | It's not clear to me that those aren't just as self serving as
         | say a big company in the us operating freely and so on.
        
           | re-thc wrote:
           | China can't print money and go in infinite debt mode like the
           | US does?
           | 
           | The government needs to recover from COVID.
           | 
           | Perspective:
           | 
           | As leader the in control, I see there's a company that has
           | the largest payment network in the country. Well that can't
           | happen. I need a slice of it. So let's "regulate" it.
        
             | fortuna86 wrote:
             | China's public debt exceeds the US in several areas,
             | private debt lags behind but is still substantial.
        
               | seanmcdirmid wrote:
               | It isn't clear if SOE debt should be considered public or
               | private debt. On the one hand, these are often publicly
               | traded companies, in the other hand everyone assumes
               | their debt is implicitly guaranteed by the government.
               | Localities will often load up local SOEs with debt when
               | they need to do something for public interest, like build
               | a subway or road. So China's public debt situation is
               | really murky.
        
             | ImPostingOnHN wrote:
             | _why_ can 't that happen?
             | 
             |  _why_ do you need a slice of it?
        
           | SllX wrote:
           | The PRC as a government makes the calls that it does because
           | it is one of the vehicles of power by which the CCP operates.
           | Remember that constitutionally the CCP is above the
           | government, the law and the PLA and therefore the highest
           | offices of power within mainland China are not any of the
           | Executive offices of government but the political offices
           | (General Secretary of the CCP, the Politburo and the members
           | of the standing committee).
           | 
           | The People's Liberation Army, People's Armed Police and
           | Militia answer to the Central Military Commission which is
           | subordinate directly to the Central Committee of the Chinese
           | Communist Party.
           | 
           | It isn't like the United States or Europe or even Japan or
           | Korea. Your basic assumptions vis a vis how we work and
           | therefore how they must work will never work when trying to
           | serve as a proper lens for interpreting the PRC because the
           | PRC is itself an institution subordinate to a Party which
           | considers all aspects of Chinese society both public and
           | private subordinate to the Party including State, Religion
           | and the activities families and businesses of their subjects
           | which in their eyes doesn't stop at the border if you are of
           | Chinese descent.
           | 
           | So if a business like Alibaba or a businessman like Jack Ma
           | is challenging anything about that framework, or the laws of
           | the PRC and policies of the CCP, they can't afford to let
           | that stand because the most important thing to them is
           | maintaining their internal cohesion and power. Everything
           | else is secondary or tertiary.
        
         | poszlem wrote:
         | I came across a comment that resonated with me and seems
         | relevant in this context, so I saved it. It says:
         | 
         | "The arc of communism is long and it leans towards oppressing
         | the fuck out of people. It's a tendency of all governmental
         | systems. Communism rests most of its power in the hands of
         | government without a moneyed elite to oppose them, so it tends
         | to move to authoritarianism faster and with less resistance."
        
           | fortuna86 wrote:
           | Another quote: "wealth always consolidates at the top, you
           | can choose private sector or government to do so."
        
             | esafak wrote:
             | Who, Piketty?
        
           | sva_ wrote:
           | > without a moneyed elite
           | 
           | Contrast that with
           | 
           | > China's parliament has about 100 billionaires
           | 
           | https://www.cnbc.com/2017/03/02/chinas-parliament-has-
           | about-...
        
             | rs999gti wrote:
             | > China's parliament has about 100 billionaires
             | 
             | Like all communist nations, there is a ruling elite.
        
           | jjoonathan wrote:
           | This is the idea of Republicanism: strengthen the nobility to
           | oppose the king. It's not necessarily a bad idea, depending
           | on who is oppressing you more at the moment. However, the
           | nobility is always in love with it for self-serving reasons
           | completely independent of the underlying facts so it's
           | important to develop an independent opinion on the matter
           | that is specific to your situation rather than jumping for
           | every bit of self-serving speculation that (for example)
           | single payer healthcare today will lead to gulags tomorrow,
           | or that allowing companies to dump toxic chemicals or banks
           | to take more risk etc will make you more free.
           | 
           | I'm not accusing you of making those silly arguments, but
           | those silly arguments are a frequent end of this line of
           | reasoning, so they are worth watching out for.
        
           | pfisherman wrote:
           | Please excuse my naivete here, but communism is an economic
           | system and not a form of government, no?
           | 
           | My understanding is that economics and governance are largely
           | - though not completely - orthogonal.
        
             | livelielife wrote:
             | [flagged]
        
               | barrysteve wrote:
               | Communism was a political and economic system. When
               | stalin and hitler dipping their toes in
               | faith/religion/belief it all went wrong and collapsed-in
               | on itself.
               | 
               | Ancient Rome had government and politics before religion.
               | 
               | The last two thousand years had state religions at some
               | points and the churches have their beliefs on governance,
               | which they do internally and influence the world
               | externally to some degree.
               | 
               | They are separate concepts and communism never reached
               | the level of an effective religion. It's not easy to wash
               | away the distinction between concepts.
        
             | fnovd wrote:
             | Marxist theory says that the separation between economic
             | and state power is illusory at best and intentionally
             | deceptive at worst. So a communist isn't going to think it
             | possible to separate economic and state power, whereas that
             | concept of that separation of powers is a foundational
             | component of modern liberalism. It's why the two camps have
             | a such a hard time talking to each other; they really don't
             | see things the same way.
        
             | mongol wrote:
             | I don't see how they can be kept separate. Governance is to
             | a large degree the creation of policies for managing of
             | resources, and managing resources is what economics is
             | about.
        
           | jihiggins wrote:
           | Maybe from the perspective of the moneyed elite, but in what
           | universe is China breaking up a monopoly an indicator of
           | "authoritarianism"
        
             | dmonitor wrote:
             | I'd love to hear Jack Ma's opinion on it
        
             | kansface wrote:
             | The US breaks up companies when they abuse their position
             | to unfairly advantage themselves in our market. China just
             | disappeared its most successful businessperson and chopped
             | up his business because he directly criticizing the
             | government.
        
             | thrdbndndn wrote:
             | Because the way it breaks up, it doesn't feel like it is to
             | fight against monopoly, more like the gov not wanting a
             | business empire that becomes too influential.
             | 
             | Since it breaks down by divisions, so for example taobao
             | would still be the top e-commerce competitor. Not to
             | mention, despite being huge, I can't say Alibaba has
             | monopoly in any of their services.
        
         | kobalsky wrote:
         | the US senate blocks mergers left and right.
        
           | eppp wrote:
           | Not nearly enough of them especially in the tech sector. Look
           | at all of the damage google did when buying youtube and
           | facebook buying instagram. Competition and innovation are
           | supposed to be good things.
        
         | pmoriarty wrote:
         | There's no bright, clear separation between governments and
         | corporations in America.
         | 
         | Corporate execs regularly get jobs in government, and often
         | wind up "regulating" the very industries/companies they came
         | from. It's also an open secret in Washington that when
         | politicians retire they often get cushy, high paying jobs in
         | the very companies they regulated or provided government
         | contracts to.
         | 
         | It's a revolving door between corporations and governments, and
         | it's misleading to think the one is truly separate from the
         | other.
         | 
         | A better model is to look at the corporate-government
         | interaction as competing elites vying with one another for
         | money, power, and influence, and just as often collaborating
         | with each other on shared interests.
        
           | namdnay wrote:
           | > and often wind up "regulating" the very
           | industries/companies they came from
           | 
           | the other way of seeing that is that if you want to regulate
           | a domain you're going to want to have people who know the
           | domain
           | 
           | > when politicians retire they often get cushy jobs, high
           | paying jobs in the very companies they regulated or provided
           | government contracts to
           | 
           | again, it makes sense for the company to buy the services
           | (and the address book) of someone who knows everyone in the
           | space.
           | 
           | of course all this creates a big incentive to cosy up to
           | those companies, but it's not as black as you are suggesting
        
             | digging wrote:
             | > the other way of seeing that is that if you want to
             | regulate a domain you're going to want to have people who
             | know the domain
             | 
             | Sure, but not people who have a vested interest in
             | minimizing regulation.
        
           | nh23423fefe wrote:
           | Hmm I don't follow. Governments and corporations are
           | organizations of people. Just because people move between
           | them doesn't mean they aren't different.
           | 
           | The origin, abilities, aims, and accountability are
           | different.
           | 
           | > elementary and high school are the same its just different
           | people moving between them competing for status.
           | 
           | This doesn't seem persuasive to me. Describing what some
           | people do while in an organization doesn't define the
           | organization.
           | 
           | Why not include universities in that list?
           | 
           | Governments exists to manage violence and through law.
           | Corporations exist because they outcompete individuals for
           | subsistence.
        
         | seydor wrote:
         | It's 2 different takes on Power.
         | 
         | The US ensures its continuation and longevity via the small
         | group of Elite families and new wealth that is continuously
         | being generated. They control the media and so many more, which
         | keeps populism at bay. If democratic forces were left on their
         | own, it would have reached the state of decline that happened
         | to many e.g. social democratic states.
         | 
         | China guards the power so that it stays with the Party, and
         | imprisons Wealth when it becomes threatening
        
           | megaman821 wrote:
           | Your premise doesn't even hold for the short time period of
           | 40 years. Who are the elite families that controlled the US
           | in the early 80s and still control it now?
        
       | 27fingies wrote:
       | > The Communist authorities dislike the idea of anything, let
       | alone a large private business, outshining the party.
       | 
       | I have a hard time believing this is the reason the Communist
       | party wants to control capitalist elements... because they
       | "outshine the party"
        
       | ManiAbod wrote:
       | [dead]
        
       | paxys wrote:
       | > breaks itself
       | 
       | The CCP has nothing to do with it, I'm sure.
        
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