GitHub are not some bastion of righteousness - they are literally owned by Microsoft. And they work hard to stop people from getting too much Open Source from them, with rate limits and the like, so essentially gate keep.

I think CSDN probably want to gatekeep their clone even harder, but in general having archives of GitHub on the Internet is a good thing.

Would you say its unfair to base pricing on any attribute of your customer/customer base?

A business being in a position to be able to implement differential pricing (at least beyond how they divide up their fixed costs) is a sign that something is unfair. The unfairness is not how they implement differential pricing, but that they can do it at all and still have customers.

YouTube can implement differential pricing because there is a power imbalance between them and consumers - if the consumers want access to a lot of content provided by people other than YouTube through YouTube, YouTube is in a position to say ‘take it or leave it’ about their prices, and consumers do not have another reasonable choice.

The reason they have this imbalance of market power and can implement differential pricing is because there are significant barriers to entry to compete with YouTube, preventing the emergence of a field of competitors. If anyone on the Internet could easily spin up a clone of YouTube, and charge lower prices for the equivalent service, competitors would pop up and undercut YouTube on pricing.

The biggest barrier is network effects - YouTube has the most users because they have the most content. They have the most content because people only upload it to them because they have the most users. So this becomes a cycle that helps YouTube and hinders competitors.

This is a classic case where regulators should step in. Imagine if large video providers were required to federated uploaded content on ActivityPub, and anyone could set up their own YouTube competitor with all the content. The price of the cheapest YouTube clones (which would have all the same content as YouTube) would quickly drop, and no one would have a reason to use YouTube.

would not be surprised if regional pricing is pretty much just above the break even mark

And in the efficient market, that’s how much the service would cost for everyone, because otherwise I could just go to a competitor of YouTube for less, and YouTube would have to lower their pricing to get customers, and so on until no one can lose their prices without losing money.

Unfortunately, efficient markets are just a neoliberal fantasy. In real life, there are network effects - YouTube has people uploading videos to it because it has the most viewers, and it has the most viewers because it has the most videos. It’s practically impossible for anyone to compete with them effectively because of this, and this is why they can put their prices in some regions up to get more profit. The proper solution is for regulators to step in and require things like data portability (e.g. requiring monopolists to publish videos they receive over open standards like ActivityPub), but regulatory capture makes that unlikely. In a just world, this would happen and their pricing would be close to the costs of running the platform.

So the people paying higher regional prices are paying money in a just world they shouldn’t have to pay, while those using VPNs to pay less are paying an amount closer to what it should be in a just world. That makes the VPN users people mitigating Google’s abuse, not abusers.

Yes, but for companies like Google, the vast majority of systems administration and SRE work is done over the Internet from wherever staff are, not by someone locally (excluding things like physical rack installation or pulling fibre, which is a minority of total effort). And generally the costs of bandwidth and installing hardware is higher in places with a smaller tech industry. For example, when Google on-sells their compute services through GCP (which are likely proportional to costs) they charge about 20% more for an n1-highcpu-2 instance in Mumbai than in Oregon, US.

that’s abuse of regional pricing

More like regional pricing is an attempt to maximise value extraction from consumers to best exploit their near monopoly. The abuse is by Google, and savvy consumers are working around the abuse, and then getting hit by more abuse from Google.

Regional pricing is done as a way to create differential pricing - all businesses dream of extracting more money from wealthy customers, while still being able to make a profit on less wealthy ones rather than driving them away with high prices. They find various ways to differentiate between wealthy and less wealthy (for example, if you come from a country with a higher average income, if you are using a User-Agent or fingerprint as coming from an expensive phone, and so on), and charge the wealthy more.

However, you can be assured that they are charging the people they’ve identified as less wealthy (e.g. in a low average income region) more than their marginal cost. Since YouTube is primarily going to be driven by marginal rather than fixed costs (it is very bandwidth and server heavy), and there is no reason to expect users in high-income locations cost YouTube more, it is a safe assumption that the gap between the regional prices is all extra profit.

High profits are a result of lack of competition - in a competitive market, they wouldn’t exist.

So all this comes full circle to Google exploiting a non-competitive market.

they have ran out of VC money

You know YouTube is owned by Google, not VC firms right?

Big companies sometimes keep a division / subsidiary less profitable for a time for a strategic reason, and then tighten the screws.

They generally only do this if they believe it will eventually be profitable over the long term (or support another part of the strategy so it is profitable overall). Otherwise they would have sold / shut it down earlier - the plan is always going to be to profitable.

However, while an unprofitable business always means either a plan to tighten screws, or to sell it / shut it down, tightening screws doesn’t mean it is unprofitable. They always want to be more profitable, even if they already are.