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Home / Business / Elizabeth Warren's new plan: Break up Amazon, Google and Facebook

Elizabeth Warren's new plan: Break up Amazon, Google and Facebook



The far-reaching proposal would impose new rules on certain types of technology companies with $ 25 billion or more in annual sales, forcing Amazon and Google to spin out some of their companies and refrain from their overwhelming control over e-commerce. The plan also aims to relax some of the highest profile mergers in the industry, such as the combinations of Amazon and Whole Foods, and Google and DoubleClick, as well as Facebook's acquisition of Instagram and WhatsApp.

The proposal of the Democratic presidential candidate is sure to rank Silicon Valley leaders and investors as well as opponents of government rules while applauding progressive activists, crime representatives, and a number of lawmakers who have separated what they see as unsustainable monopolies in the industry. .

Warrens presidential campaign shared with CNN details of the plan, which outlines concrete steps to break up major tech companies. It marks Massachusetts Democrats' third major political disclosure so far this year, and is another sign that progressive firebrand intends to divorce itself in a growing democratic field by placing an ambitious agenda centered on the campaign's overall theme to dismantle wealthy and strong interests.

"Today's big-tech companies have too much power ̵

1; too much power over the economy, our society and our democracy. They have bulldozed competition, used our private information for profit and tilted to everyone else. And in the process, they have hurt small businesses and founded innovation, "Warren wrote in a medium post about the proposal. "Therefore, the administration will make major structural changes in the technology sector to promote more competition – including breaking up Amazon, Facebook and Google."

According to a source familiar with her plans, Warren is expected to market the new proposal Friday night in Long Island City, where Amazon recently backed off the plan to build a massive campus after imposing intense political setbacks. The Senator also goes to the South at the Southwest Conference in Austin, Texas, on Saturday.

The proposal was met with a cheer from New York State Sen. Julia Salazar, a Democrat Socialist Ally by Freshman Rep. Alexandria Ocasio-Cortez and a vocal opponent of New York's agreement to bring Amazon's second headquarters to Queens.

"I'm glad to see the dangers of monopolistic market power being taken seriously by a leading presidential candidate," Salazar said in a statement. "Gov. Andrew Cuomo and other pro-Amazon politicians must see the danger of subliming all facets of our daily lives into a single all-encompassing company, which is clearly the Amazon business model."

The proposal is likely to stimulate debate in the rest of the democratic field, which includes charging candidates such as Warren, but also others who have taken substantial sums of money from Silicon Valley. A Warren aide told CNN that the Senator has not yet discussed his proposal with colleagues in Congress.

The plan will pose existential threats to the business models that turned some giant tech companies into money mirrors.

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For example, if you separate Google's advertising business from the search feature, Google ads – which the company relies on almost all of its revenue – will be much less valuable. It would therefore require Google to sell DoubleClick, the company it purchased in 2008, that expanded the reach of the advertising network.

Warren's suggestion would also prevent Amazon from selling its own brands through the platform, resulting in lost revenue for the company but not killing the business model of cutting off any other transaction on the site. The move will alleviate one of the major concerns of other sellers in the market – that Amazon can decide which products are highlighted and promoted more prominently.

Warren's use of $ 25 billion in annual sales as a measure is remarkable because today, anti-trust enforcement is largely dependent on complex and ambiguous legal tests on factors such as market share and evidence of price leveling.

"I want to make sure the next generation of major US technology companies can flourish," Warren wrote in the Medium Post. "To do that, we must stop this generation of big tech companies from throwing around their political power to shape the rules to their advantage and throw around their financial power to sniff out or buy up all potential competitors."

Before War's visit to New York on Friday, Secretary of State Mike Gianaris, representing Long Island City, whose opposition threatened to change the Amazon agreement before the company resigned, said: "I am proud of the progressive movement in our country Going through Queens It is only natural that presidential candidates spread their message in Western Queens, and I look forward to hearing what Senator Warren has to offer. "


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