Comment by mulmen

> In a perfect competition environment all profits go to 0.

Competition drives prices down to the lowest sustainable point but not to zero. If one company drives prices below a sustainable (profitable) point that’s market failure because it starves the competition. It’s the thing Google did and the reason we have anti-trust law.

Google created a situation where they had no competition. Necessity being the mother of invention suggests that they innovate less in the absence of competition. Monopolies are poison to innovation.