So what does the upcoming 2020 election and big IT service have in common? Apparently, lots. Because one presidential hopeful vows to break up big tech companies. It’s Senator Elizabeth Warren vs. big tech.
So recently, the Massachusetts senator called for major tech companies to break up. These include Amazon, Google and Facebook. She also called out Apple. Sen. Warren suggests that Apple should spin off it’s Apple Store. As you know, that’s where Apple users get all their apps from. She claims these companies “bulldozed” small companies and gives competition little, if any, chances. Then she pledged strict anti-trust laws.
One thing she would do is prevent all these mergers, like WhatsApp with Facebook and Whole Foods with Amazon. There would also be stricter regulations for those IT support companies who make over $25 billion a year. For example, Amazon wouldn’t be able to sell it’s own products against competitors on it’s website. Google wouldn’t be able to promote it’s own ratings features over Yelp. She compared Silicon Valley in the early 21st century to big oil and big railroads of the early 20th century. In her plan, for example, Google would have to sale Nest and Waze.
So what is to make of this? In principal I do sympathize with Sen. Warren. It’s a shame that most of big tech is in control of a handful of companies. Also shameful is that when a group of entrepreneurs want to start a tech company, they’re often either swallowed up or bought out by the big boys. Then look at the retail industry. For example, in two days, over 450 retail stores went out of business. Gee, I wonder where these consumers are going. However, I doubt what Sen. Warren is proposing is realistic. How is she going to force Apple to give up it own Apple Store? How is she going to force Google to sale back Nest and Waze? They won’t. This fight between Senator Elizabeth Warren vs. big tech is just beginning. How will it end?