Internal Component Marketplaces vs. Transfer Pricing of Inner Source

I was recently asked why I argue against company-internal marketplaces for software components yet emphasize the need for pricing components that cross company boundaries within the same holding company (also known as transfer pricing). The answer is simple: Setting up an internal marketplace is a managerial choice and pricing the movement of code (IP) across company boundaries is a taxable event that you need to deal with: It is not a choice.

Let me take it in steps.

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