When it’s not good to be FANG – the next President wants to break them up

In the interest of making big structural changes to the tech sector, Senator Elizabeth Warren vowed that she will break-up Facebook, Amazon, and Google if elected as president next year. According to her, this will provide a level playing field for every tech company.

“Today’s big tech companies have too much power — too much power over our economy, our society, and our democracy,” Warren said. “They’ve bulldozed competition, used our private information for profit, and tilted the playing field against everyone else.”

She then took us to the ’90s era and explained how the US government sued Microsoft for being in the same position where Google, Facebook, and Amazon are today. The senator firmly believes that the break-up of Microsoft was need of the hour and it ultimately helped Facebook, Google, and Amazon rising to the top in their respective field.

She underscored that promoting competition is key to innovation. Competition “pushes everyone in the marketplace to offer better products and services.” She went on saying, “Aren’t we all glad that now we have the option of using Google instead of being stuck with Bing?”

On her medium blog post, she explained how big companies use mergers as a means to eliminate competition which ultimately hurts small businesses. She particularly highlighted Facebook’s acquisition of WhatsApp and Instagram. And then it is Amazon which according to her is forcing “smaller competitors to sell at a discounted rate.” She also criticized Amazon for being a participant in its own marketplace. “This can create a conflict of interest that undermines competition.

“Amazon crushes small companies by copying the goods they sell on the Amazon Marketplace and then selling its own branded version.”

She also launched a stern attack at Google for it being allegedly involved in favoritism. “I want a government that makes sure everybody — even the biggest and most powerful companies in America — plays by the rules. And I want to make sure that the next generation of great American tech companies can flourish,” explained the Senator.

Image source: Medium