2020 hopeful Elizabeth Warren unveils Big Tech breakup plan

2019-03-09 07:00
US Sen. Elizabeth Warren. (Charles Krupa, AP, File)

US Sen. Elizabeth Warren. (Charles Krupa, AP, File)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Senator and Democratic presidential hopeful Elizabeth Warren unveiled a proposal to break up Big Tech on Friday, saying firms such as Amazon, Google and Facebook hold " too much power" in society.

Warren said that as president, she would press for legislation to designate big online companies with revenues of $25bn or more as "platform utilities" barred from owning "any participants on that platform."

The Massachusetts senator seeking her party's nomination for 2020 said she would also appoint antitrust enforcers "committed to reversing illegal and anti-competitive tech mergers," including acquisitions in recent years by Amazon, Facebook and Google.

"Today's big tech companies have too much power - too much power over our economy, our society and our democracy," she wrote in a blog post on Medium ahead of a New York rally where she was to speak about the plan.

"They've bulldozed competition, used our private information for profit, and tilted the playing field against everyone else."

The proposal comes amid a growing "techlash" movement in the United States against the firms, which have grown to become the world's most valuable, amid concerns on handling of private user data and dominance of certain sectors such as online retail and internet search, and a series of antitrust investigations in Europe.

'Unwinding' Waze, WhatsApp

Warren specifically said she would seek to unwind Amazon's acquisition of the Whole Foods grocery chain and shoe retailer Zappos, Facebook's WhatsApp and Instagram, and Google's integration of the ad tech firm DoubleClick, internet of things maker Nest and mobile navigation application Waze.

"Unwinding these mergers will promote healthy competition in the market - which will put pressure on big tech companies to be more responsive to user concerns, including about privacy," she wrote.

Warren said that as part of her proposal, Amazon Marketplace, Google's ad exchange and Google Search would be considered platform utilities.

By doing this, she said, "small businesses would have a fair shot to sell their products on Amazon without the fear of Amazon pushing them out of business."

Help or hurt consumers?

Warren's plan sparked swift reaction from both sides of the issue.

"It's not pro-consumer," said Robert Atkinson, president of the Information Technology & Innovation Foundation, a think tank that follows the sector.

Atkinson said the plan "reflects a 'big is bad, small is beautiful' ideology run amok."

"The proposal ignores the fact that many of the services big tech companies now provide free used to cost consumers money," Atkinson added.

"Breaking up large internet companies just because they are large won't help consumers."

But Matt Stoller of the Open Markets Institute, a group focused on competition in the tech sector, said the plan is long overdue.

"The @ewarren plan to undo mergers and conflicts of interest is the *moderate* approach. Keep in mind the Sherman Act is not just a civil statute but a criminal one. Monopolization is a crime," he tweeted.

Charlotte Slaiman of the consumer group Public Knowledge welcomed the proposal.

"While digital platforms like Amazon, Google and Facebook have allowed some businesses to flourish, this has granted them significant power over how other companies do business," she said.

"We're very concerned about situations where a company has free reign to control the playing field on which they compete."

Michael Carrier, a professor of antitrust law at Rutgers University, said that the legal basis for taking on Big Tech would be shaky.

"Under the antitrust laws, you can't break up a company just because they're big," Carrier told AFP, pointing out that the law requires monopolization and "exclusionary conduct."

"Being big is not exclusionary conduct. While big tech companies could present concern, that's not enough for an antitrust case."

Read more on:    elizabeth warren  |  us  |  politics  |  technology

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.