Well, that's how it's 'supposed' to work. According to 18th century agrarian economics. Before the telegraph (let alone the internet) enabled businesses to get that large.

But due to collusion, sometime-insufficient regulation (e.g., ad networks that can and do deliver malware), sometime-overbearing regulation (e.g., software patents), and ... well ... the rest of the real world, Adam Smith market economics is exceedingly reductionist. It works in the microcosm. Until you take into account that no economic entity or system is fully enclosed.

For example: has Blackboard yet been toppled, or are they still suing and/or acquiring any potential competitor via its vast patent portfolio, all the while being the absolute worst solution to its problem possible?