Better information for incumbents, lock-in, and demand- and supply-side economies of scale suggest that industry structure in high-technology industries will tend to be rather concentrated. On the other hand, information technology can also reduce minimum efficient scale thereby relaxing barriers to entry. People value diversity in some areas, such as entertainment, and IT makes it easier to provide such diversity.
Standards are a key policy variable. Under a proprietary standard, an industry may be dominated by a single firm. With an open standard, many firms can interconnect. Consider, for example, the PC industry. The PC itself is a standardized device: there are many motherboard makers, memory chip makers and card providers. There are even several CPU providers, despite the large economies of scale in this industry.
Compare this to the software world, where a single firm dominates the PC operating system and applications environment. What's the difference? The hardware components typically operate according to standardized specifications, so many players can compete in this industry. In the software industry, standards tend to be proprietary. This difference has led to a profound difference in industry structure.