Earlier quoted context omitted.
This seems like a fallacy. VC subsidies benefit consumers until they run out of money or raise prices. As long as the market remains free, there will be new entrants. The problem is regulation that keeps competitors out. In some cases Big Co. lobbies for this regulation, but often it is government that kills competition by attempting to tax said Big Co., or adds expensive compliance.
We want to build a new car. A fancy electric car. We raise money from investors, build plant, hire engineers, designers and workers, establish a supply chain and a distribution chain. How should we fairly price the product? A. $0 for the next 10 years. We've got really rich investors. B. $X0,000, in line with the fair market price for a new vehicle. The role of capital money is to cover capital expenses (duh), especi…
So while I agree this can be an issue in general, I'm not seeing the argument for it here. I think it would actually be relatively easy for a competitor to get started in this space.