Today, Elizabeth Warren is going to propose a regulatory plan with the intention to break up America’s largest tech companies like Amazon, Google, Facebook, and Apple. Warren is attending a rally in Long Island City in the area where Amazon was supposed to build a new campus. Amazon cancelled their plans after receiving fierce backlash because Amazon would be receiving nearly $3 billion in government incentives. Warren’s plan would (1) create legislation that prohibits platforms from both creating a marketplace and participating in that marketplace, (2) appoint regulators who would “unwind tech mergers that illegally undermine competition, and (3) force the rollback of some acquisitions made by these big tech companies like Facebook’s deals for WhatsApp, Instagram, and Whole Foods. The policy would also prevent these companies from sharing users’ information with third parties. Warren wants everyone to play by the rules, and to achieve this, we must first prevent these big, powerful companies from using their political and economic power to avoid following rules and buying out any competition. To restore the balance of power, the tech companies need to be broken up.
Other candidates like Bernie Sanders and Amy Klobuchar are on board with limiting the influence of these large tech companies but haven’t produced policies on how they would go about this.
Warren’s plan breaks down to two tiers of companies that would be affected by the regulations: those whose annual global revenue is over $25 billion and those whose annual revenue is between $90 million to $25 billion. The top tier would have to “structurally separate” their products from their marketplace. The lower tier would still be under regulations but would not need to separate themselves.
Click here to read the full 3/8/19 article by Astead W. Herndon from The New York Times.Add Comment