[HN Gopher] The cutest monopoly: Koala Kare
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       The cutest monopoly: Koala Kare
        
       Author : Anon84
       Score  : 38 points
       Date   : 2024-06-30 11:17 UTC (1 days ago)
        
 (HTM) web link (thehustle.co)
 (TXT) w3m dump (thehustle.co)
        
       | talldayo wrote:
       | > In the age of antitrust, why has Koala Kare, Big Baby Change
       | Station, flown under the radar?
       | 
       | Proportionality, it seems. Why has nobody sued the printer ink
       | monopolists? Because compared to Google or Apple they're somewhat
       | of a lesser evil.
        
         | 1propionyl wrote:
         | Same with Crayola. The reality is that Koala Kare and Crayola
         | simply do not affect people's lives as much as tech giants on
         | the list (Amazon and Apple), or CPGs like Hershey's candy bars
         | or Gatorade beverages.
         | 
         | To put a finer colored wax point on it: my crayon doesn't have
         | access to my entire online life or my shopping habits, and I
         | have no effective societal obligation to own Crayola crayons.
        
           | drbig wrote:
           | > and I have no effective societal obligation to own Crayola
           | crayons.
           | 
           | Thanks for that insight. "Vote with your wallet" and similar
           | responses seem to die under the actual, practical, reality of
           | exclusion and/or lack of access.
        
         | pessimizer wrote:
         | Because it's not the age of antitrust, and nothing has been
         | broken up? Lina Khan trying her best does not an age of
         | antitrust make.
         | 
         | It's an age of unprecedented concentration of ownership with
         | attendant open and unashamed market manipulation, which of
         | course makes people talk about antitrust more, while also
         | having absolutely no mechanism to do anything about it, which
         | makes them talk about it with a tone of frustration and anger.
         | 
         | But frustration and anger does not break up companies.
         | Functioning governments do.
        
       | bsder wrote:
       | This is a monopoly without lock-in or network effect. As such, it
       | really isn't a priority.
       | 
       | If KoalaCare raises prices or collapses quality, they'll get a
       | competitor. A maintenance department can replace every single
       | changing station in a big office building in a month if they
       | wanted to.
        
       | mylastattempt wrote:
       | It seems the author does not see the difference between a
       | monopoly on a service as opposed to a monopoly on a product.
       | These changing stations can be replaced without any difficulty,
       | by another brand, if the need arises. For services or whole
       | ecosystems, such as Google and Apple (iCloud, Apple Pay, etc)
       | there is a huge vendor lock-in, even for consumers. Monopolies in
       | the latter are unwanted most of the time. But being the major
       | manufacturer and distributor of some non-consumer-bought public
       | bathroom equipment doesn't really do much harm, since a
       | competitor can arise relatively easily if need be.
        
         | stronglikedan wrote:
         | > It seems the author does not see the difference between a
         | monopoly on a service as opposed to a monopoly on a product.
         | 
         | It seems that they don't even know what a monopoly is _at all_
         | in the context of their own article about antitrust laws,
         | really.
        
         | xnyan wrote:
         | >these changing stations can be replaced without any difficulty
         | 
         | Don't disagree that a plastic changing station can be
         | efficiently made by someone else, but I think you may be
         | misunderstanding their advantage. Koala is providing a service
         | in the world of "places in which the public use the bathroom",
         | which is part of the "places occupied by the public" market.
         | There are an unfathomable amount of needs, requirements,
         | practical concerns, laws/regulations, etc that have to be
         | served when you operate a public space.
         | 
         | Koala is part of the established suite of solutions to the
         | problem of operating a public space, and "supply chain
         | diversity" or even "we cost marginally less" is not enough to
         | displace them. Koala would have to really mess up or you'd have
         | to offer a significant advantage to displace a solved problem
         | at an affordable price when it's just one of a thousand things
         | you need to think about.
         | 
         | tldr: rent seeking is reliable way to make money if you don't
         | mess up your core value or get too greedy for the market to
         | bear
        
         | autoexec wrote:
         | It's better for everyone when there is healthy competition in a
         | market and companies are forced to attract buyers on things
         | like innovations, features, service, and price, but honestly I
         | don't mind too much when one company basically dominates the
         | market as long as they aren't going out of their way to
         | shutdown competition. Pressuring companies to sign exclusive
         | deals, bribing government for exclusive contracts, buying up
         | competitors or operating at a loss to squeeze them out, etc.
         | Those are signs that antitrust regulators might need to pay
         | attention. Same when there is competition but it looks like is
         | collusion on prices, innovation stagnates, and customers are
         | unhappy.
        
       | toast0 wrote:
       | > "If you have a monopoly just because you're the only one who
       | happens to make something and no one else wants to make it,
       | there's nothing wrong with that," Milici says.
       | 
       | > "US antitrust law doesn't prohibit monopolies. It prohibits
       | conduct by monopolists."
       | 
       | > Meanwhile, companies like Crayola (83%) or Gatorade (63%) have
       | faced little scrutiny.
       | 
       | AFAIK, none of these companies are known to engage in prohibited
       | conduct, so that's probably why they've not had much scrutiny.
       | 
       | You don't hear about Koala Kare forcing you into buying anything
       | else if you want their change stations, or anything like that.
       | There's free competition, but the Koala stations seem to work
       | well and so there you go. If RubberMade is one of the major
       | alternates and they can't sell a lot of them, I dunno ...
       | RubberMade products are very common in commercial buildings.
       | 
       | Same thing with Crayola, maybe they've got some super secret
       | thing where they buy up all the crayon making supplies, or maybe
       | everyone else just makes shitty crayons and you only have to get
       | burned a couple times before you're like Crayola crayons are
       | always reasonable, just gonna buy those. Maybe not their markers
       | though, I'm partial to Sanford's Mr. Sketch Scented Markers.
        
         | righthand wrote:
         | I mean Gatorade you can make at home with 3 ingredients so
         | definitely not a monopoly.
        
           | codetrotter wrote:
           | Or you can buy a bottle of Gatorade and mix salt and vinegar
           | and lemon juice into it and then have your son give that to
           | the bully that's been stealing his Gatorade.
           | 
           | https://abcnews.go.com/amp/US/mother-arrested-after-
           | concocti...
        
         | morkalork wrote:
         | That's pretty much the point right? It's not like buying a
         | Koala Kare change station contractually locks you out of buying
         | something else from one of their competitors, unlike I don't
         | know, what happened between Dell, Intel and AMD...
        
           | ssl-3 wrote:
           | Indeed. One can put a Koala Care change station _right next
           | to_ a Diaper Depot change station, and this is fine.
           | 
           | They might have different features, functions, and/or prices,
           | and that's OK too.
           | 
           | It can even be OK for people like architects to freely (but
           | consistently) specify one particular brand in deference to
           | other brands. This is fine, too.
           | 
           | An architect stating something "We always specify Hubbell
           | wiring devices, Sherwin Williams paint, and Koala Care
           | changing stations wherever applicable because they've so-far
           | proven to offer a consistently excellent combination of
           | performance, service, and value" is not, on its face, an
           | improper thing to do.
           | 
           | It can be quite OK and perfectly-legal to have a natural
           | monopoly. Selling a _very, very popular_ widget is not an act
           | that is somehow automatically worthy of damnation.
           | 
           | However, it can be very not OK (and often very illegal) for a
           | company to _abuse_ their status as a natural monopoly,
           | especially in anticompetitive ways.
           | 
           | But I don't see anyone accusing Koala Care of any specific
           | wrongdoing, so.....
        
         | throwup238 wrote:
         | It's pretty obvious why Rubbermade is losing out: it looks
         | sterile while the Koala Kare one has a cute little koala
         | graphic on it. I bet it wins out in the market entirely thanks
         | to that graphic.
        
       | bradfitz wrote:
       | I'm suddenly reminded of an old tweet of mine:
       | https://x.com/bradfitz/status/825404204055359488
       | 
       | "A moment of silence please for all the babies who fell off not-
       | so-Sturdy Station v1. #ScaryVersionNumbers"
        
       | jader201 wrote:
       | Re: Gatorade's 63% monopoly, I've recently thought about how
       | quickly Prime went to mass market. It seems like it blew up on
       | YouTube and stores couldn't keep it in stock.
       | 
       | Then all of the sudden, it's sitting next to Gatorade in huge
       | volumes at Costco.
       | 
       | I've never seen a product so quickly "disrupt" a long-time
       | monopoly. It remains to be seen whether it's a fad or if they
       | could actually compete with Gatorade, but it seems like they
       | could, if anyone could.
       | 
       | To be clear, I'm personally not a fan of how companies like this
       | use marketing (especially on YouTube) targeting young --
       | impressionable -- audiences, so I'm not necessarily rooting for
       | either one of them (Gatorade is horribly unhealthy). But I have
       | found it interesting at the very least.
        
         | marcellus23 wrote:
         | Where do you live? I'm in the northeast and I've never heard of
         | Prime before, and I can't remember ever seeing it (maybe in one
         | or two stores), although maybe my eyes just skip over it since
         | I'm usually looking for Gatorade.
        
           | ssl-3 wrote:
           | I, too, live above the Mason-Dixon line and I've never heard
           | of Prime either.
           | 
           | But maybe this has less to do with geography, and more to do
           | with the media that we allow ourselves to be exposed to.
           | 
           | For instance: I haven't watched regular advertising-supported
           | TV (OTA or streaming or otherwise) for at least a decade, and
           | my general online experience (including with things like
           | YouTube) is generally completely ad-free (thanks,
           | Sponsorblock and uBlock Origin).
           | 
           | I am, very purposefully and intentionally, rather "out of the
           | loop" when it comes to advertising for trendy things.
        
         | roland35 wrote:
         | The beverage industry spends a huge amount on advertising, and
         | Prime is probably a good example of why!
        
       | xorcist wrote:
       | Not really a monopoly, as there are several competing brands. At
       | least abroad. There are plenty of other markets with an
       | dominating actor where competition isn't harmed, so it's not
       | considered problematic in the antitrust sense.
       | 
       | One should probably take the invention story here as just a
       | story, foldable diaper changing stations were starting to get
       | common in 1986, at least in the Nordics.
        
       | tetris11 wrote:
       | > The Koala joined the ranks of omnipresent brands that have
       | surpassed the generic names for what they make: think Kleenex,
       | Chapstick, Play-Doh, and so on.
       | 
       | I was surprised when someone said to me "do you want a tempo?"
       | after I sneezed. I had to ask them to clarify before I got it
        
         | 12_throw_away wrote:
         | I don't get it
        
         | zer00eyz wrote:
         | Tempo? or Tissue? I'm very confused now.
         | 
         | Am I missing it too or do you sneeze in funk?
        
           | fragmede wrote:
           | Tempo is a popular tissue brand is other parts of the world,
           | aka asking someone if they want a Kleenex vs a tissue.
        
           | Tao3300 wrote:
           | Yes, give me the tempo. I'm the Coltrane of jazz sneezing
           | solos.
        
       | pchristensen wrote:
       | Only tangentially related, when my kids were younger, I used
       | "changing table in the men's bathroom" as a useful measure of
       | company health. It a) costs little, and b) required little care
       | to make the decision, but a company or building that couldn't
       | manage those two things was either broke or stagnant.
        
       | toyg wrote:
       | For the sake of this publication, I hope that they got paid by
       | Google (in money or favours) for this rambling low-quality
       | "article".
       | 
       | A dominant position _in an open market with zero lock-in_ , is
       | completely inconsequential to antitrust laws. Unless nefarious
       | behaviour is alleged, it just means the product (and/or the
       | branding) is superior.
       | 
       | Can anyone replace a Koala product with an alternative, without
       | suffering any repercussion? Yes. Can anyone build a bathroom
       | without buying from Koala? Also yes. Will your bathroom continue
       | to work if you remove a Koala product? Still yes. Are consumers
       | or businesses suffering from this market dominance? Not really (I
       | guess Koala can command slightly premium prices, but we're
       | talking plastic building supplies here - the margins will likely
       | be pretty low already).
       | 
       | This has nothing to do with big-tech cases.
        
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