Sen. Elizabeth Warren, the Massachusetts Democrat who is running for president in 2020, has unveiled a plan to break up large US tech companies, including Amazon, Google, and Facebook.
“Twenty-five years ago, Facebook, Google, and Amazon didn’t exist. Now they are among the most valuable and well-known companies in the world. It’s a great story — but also one that highlights why the government must break up monopolies and promote competitive markets,” she wrote in her blog post.
She said to combat this, she wants to restore competition in the tech industry through two methods.
The first move would be turning any large company with a global revenue of $25 billion or more that offers a platform for third parties would be designated as a “platform utility.”
A platform utility company would not be allowed to create a marketplace for third parties and then participate in that same marketplace (Such as Apple-made apps in their App Store). Google Search and Google’s ad market would be separated. The goal for Warren would be to avoid companies like Google demoting competition in the ad space. Smaller companies (under $25 billion) would not have to follow this rule.
The second move Warren proposes is reversing mergers. She states there are already laws in place to break up mergers that reduce competition and she would utilize them to break up companies like Amazon from Whole Foods and Facebook from WhatsApp and Instagram.
This adds to her other stated economic proposal of a wealth tax on the richest Americans.